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Bill Gross.REUTERS/Jason Reed
Bill Gross has warned investors to tread carefully in today’s treacherous market.
The billionaire “Bond King” said they shouldn’t cash out but should avoid the riskiest assets.
Gross argued that asset values increasingly reflect “new fundamentals” like Fed policy and momentum.
Investors should exercise caution in today’s perilous market, Bill Gross has warned.
A century ago, a company’s stock price was largely determined by hard numbers such as its book value or cash flows, the billionaire cofounder of Pimco wrote in an investment outlook titled “Fundamentally Speaking” that was published on Friday.
Today, other factors such as Federal Reserve policies, levels of bank leverage, and momentum play an increased role as valuation drivers, he said. Asset prices could ultimately suffer a result, as negative forces such as spiraling public and private debts and soaring healthcare costs weigh on government budgets and sap market support.
Still, investors “need to at…
2024-01-12 19:05:09
Link from finance.yahoo.com
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