Pimco's Bill Gross Talks P/E Ratios and the Health of the Economy
Jan 22, 2024
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Bill Gross, Co-founder of Pacific Investment Management Co, talks about the health of the economy, his thoughts on the Fed's recent performance, and why big tech stocks aren't on his buy list. He discusses the impact of interest rates on economic growth, cyber security for small businesses, merger arbitrage plays, political risks, international opportunities, stock market volatility, bond market influence, and long-term deficits.
A negative yield curve, where yields on longer-term bonds are lower than shorter-term bonds, is detrimental to a capitalistic economy.
Investors should seek value in alternative investments such as high-yield dividend stocks and European stocks while being cautious in a potentially risky environment.
Deep dives
The importance of cybersecurity for small businesses
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The implications of a negative yield curve
The podcast discusses the negative yield curve and its impact on the economy. A negative yield curve, such as the two to ten-year spread, where the yields on longer-term bonds are lower than shorter-term bonds, is seen as detrimental to a capitalistic economy. The speaker suggests that a positive yield curve is essential for a stable economy and inflation rate.
Investor caution in the current market
The podcast touches on the cautious approach investors should adopt in the current market. The speaker expresses skepticism about the U.S. economy and criticizes the Federal Reserve's handling of interest rates. They recommend seeking value in alternative investments, such as high-yield dividend stocks, MLP pipelines, and European stocks, while being conservative in an environment of potential political and geopolitical risks.
Co-founder of Pacific Investment Management Co Bill Gross discusses the health of the economy, his take on the Fed's recent performance and why big tech stocks aren't on his buy list. He speaks with Bloomberg's Romaine Bostick and Alix Steel.