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The attempt by global central banks to cure a
debt crisis with more debt doesn't have much further to run,
which will end a rally that's lasted three and a half decades,
the 71-year-old manager wrote in an investment outlook for Janus
Capital Group Inc..
Gross, manager of the $1.5 billion Janus Global Unconstrained
Bond Fund, has made such warnings before and acknowledged
they've come too early.
In May 2013, Gross, then the manager of the world's largest bond
fund, the Pimco Total Return Fund, jolted Wall Street
participants on social media with this Twitter post: "The
secular 30-yr bull market in bonds likely ended 4/29/2013."
On Monday, Gross said investors should stop focusing on price
appreciation and, instead, look to "mildly levered income," such
as his recommendation to short German government debt.
"Credit-based oxygen is running out," Gross wrote in the
outlook, titled "A Sense of an Ending," in which he compared the
final stages of the market cycle with his own mortality.
"I merely have a sense of an ending, a secular bull market
ending with a whimper, not a bang."
(Reporting by Jennifer Ablan; Editing by Bernadette Baum)
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