Bill Gross Sees Stocks ‘Clearly Overvalued’ as Bond Yields Rise
- Gross says real yields are unlikely to fall ‘significantly’
- Favorite bets include M&A arbitrages and limited partnerships
Bill Gross
Photographer: Misha Friedman/BloombergThis article is for subscribers only.
Bill Gross, co-founder and former chief investment officer at Pacific Investment Management Co., said stocks are “clearly overvalued” and that bond yields would need to fall “significantly” to justify current valuations.
In an investment outlook published Wednesday, Gross said neither bonds nor equities are attractive, even after the recent selloffs, because inflation leaves little room for the Federal Reserve to lower rates from a 22-year high.