'Bond-King' Bill Gross' latest letter again laments zero/negative interest rates, and labels "land, gold, and tangible plant and equipment" as "favoured assets." There was no love at all for financial assets: "I don’t like bonds; I don’t like most stocks; I don’t like private equity." Gross warned investors that they would need to reduce risk and accept lower returns in this "high risk/low return word." He said that capitalism cannot function at zero rates, saying that they"raise asset prices, but they destroy savings and liability based business models in the process. Banks, insurance companies, pension funds and Mom and Pop on Main Street are stripped of their ability to pay for future debts and retirement benefits." Read more about "the dark side of negative rates" in his latest letter: (VIEW LINK)
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