In Bill Gross’ latest note to investors he has bucked consensus once again. Despite the possibility of “a temporary acceleration over the next few years,” he maintains his long-term negative view based on demographics, debt levels, technology, and the reversal of globalization. In absence of clear fundamentals, he turns to technical indicators when assessing the outlook for rates in 2017. “This is my only forecast for the 10-year in 2017. If 2.60% is broken on the upside – if yields move higher than 2.60% – a secular bear bond market has begun. Watch the 2.6% level. Much more important than Dow 20,000. Much more important than $60-a-barrel oil. Much more important that the Dollar/Euro parity at 1.00. It is the key to interest rate levels and perhaps stock price levels in 2017.” Read the full note here: (VIEW LINK)
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