Gross has argued for some time that the economy is at the end of a decades-long cycle of expanding credit that has culminated in negative interest rates, a situation he said is unsustainable. Rather than spurring economic growth, low rates are promoting asset bubbles as investors reach for higher yields while punishing individual savers and industries that rely on interest rates, such as bank and insurance companies, according to Gross.
He said in a June 2 note that the era of 7.5 percent annualized investment gains is history and that investors should eventually take positions to protect principal or profit from market declines.
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