Bill Gross is out with his latest Investment Outlook
Janus Capital's Bill Gross is out with a warning today. He says leverage, not a bond bear market is what market participants need to worry about.
On the Fed, he said the path is likely to be shallow:
"The Fed's purported 3 to 4 hikes this year beginning in March are likely exaggerated. The U.S. and global economies are too highly leveraged to stand more than a 2% Fed Funds level in a 2% inflationary world. If more than 2%, a stronger dollar would affect emerging market growth and lead to perhaps premature tightening on the part of the ECB and other developed market central banks," he writes today.
For the remainder of the year, he expected 10-year yields around 3%. Today they are down 4 bps to 2.84%.
