There are many opinions about the stock market, each person has something different to say, which is why doing your own research is so important. But when looking for voices to learn from where do people go? Well, some of the most experienced investors on Wall Street hold a great deal of respect and are therefore more trusted than others, even analysts have ratings on how accurate their stock predictions are.
One investor that has been pulling headlines after a very long time is Bill Gross, the legendary bond-fund manager who is referred to on Wall Street as the ‘Bond King’. Gross has recently placed his input on the market’s incredible rallies for the past months despite the virus and unemployment’s condition. Gross explains and I quote “This market is driven—yes—by intense speculation, but also by fiscally pumped, central bank-primed corporate earnings, which when discounted to present value by near zero nominal and in many cases negative real interest rates, produce record stock prices,” Gross being a bond investor, of course wrote about near 0% interest rates and how bond yields accounting for inflation, are trading in subzero territory.
Essentially Gross seems to think that the Washington’s stimulus measures are fueling investor confidence whether or not it is truly warranted. Do you agree with Bill Gross? Or is investor confidence largely independent of these points?
I am not a financial advisor and my comments should never be taken as financial advice. Investments come with risk, so always do your research and analysis beforehand.