Famed Portfolio Manager: “I Don’t Like Stocks; I Don’t Like Bonds”
Bill Gross is a financial advisor and portfolio manager for Janus Capital Group, Inc. He not only runs the Janus Global Unconstrained Bond Fund, valued at around $1.5 billion, he’s also written multiple books on investment strategies. It’s safe to say Bill Gross is a reliable authority on putting together a profitable investment portfolio. So what advice does he have to offer? Most recently, Mr. Gross has advised that the markets are unreliable, and real, physical assets are the way to go.
In an investment outlook published August 3, Gross spoke of the unreliability of a variety of different kinds of assets. Many investments are yielding negative returns, causing investors to risk losing their principal. He further cited poor growth rates in many different areas, and advised investors to sell everything before things took a turn for the worse, causing them to lose everything.
Additionally, he noted that lower interest rates may make it a great time to borrow, but a terrible time to save or invest. Everything from banks to insurance companies to pension funds are suffering, and losing their ability to pay off future debts, or yield retirement benefits. The longer interest rates remain low, the less stable the economy becomes, as incomes drop and investment spending comes to a standstill.
Gross’s ultimate conclusion? “I don’t like bonds. I don’t like most stocks. I don’t like private equity. Real assets, such as land, gold, and tangible plant and equipment at a discount, are favored asset categories.”
The Value of Gold IRAs
Bill Gross isn’t alone in his thinking, either. Physical assets have always been among the most reliable investments a person can make. No matter how unpredictable the economy gets, gold and real estate remain the two most stable and reliable long term investments. Of course, currently even real estate is a bit iffy. Since the housing bubble burst in 2008, buying property has been a more difficult investment. And with fewer and fewer houses going on the market right now, experts are predicting another housing crash right around the corner.
So that leaves gold, a proven stable investment over time. As the value of stocks and bonds plummets, investors’ retirement funds are dwindling. But setting up a gold IRA can provide a secure and stable nest egg over the course of several decades.
Just like with any other retirement fund, investors contribute to their gold IRA over time, building its value for the future. Unlike other types of funds, however, a gold IRA provides real, physical gold coins. This means that their value remains stable, increasing as bonds, the markets, and even paper currency decrease in value. Thus, when the investor is ready for retirement, their IRA has maintained its buying power and increased in value enough to support them through the years to come.
Bill Gross warns that without the strength of physical assets to provide nominal economic growth, a credit-based economy can become little better than a Ponzi scheme, unable to sustain itself over time, until eventually it collapses. With gold IRAs, however, investors don’t have to worry about unstable markets, and can keep their retirement fund safe until they need it.