Pimco's Gross Says Market Selloff Doesn't Portend Recession

Tuesday, 27 Feb 2007 | 5:05 PM ET

Renowned bond investor Bill Gross said the selloff in the stock market has been overdue but it doesn't translate to a U.S. or a global recession.

Gross, who expects the Federal Reserve to start cutting interest rates in June or July, expects bond yields to remain steady until then.

Bond Allocation
Raising cash-equivalent holdings and waiting for the Fed funds rate to fall, with William Gross, PIMCO CIO & Founder and CNBC's Maria Bartiromo

He said fixed income investors should stay at the front of the yield curve. "You want to invest in high quality bonds and that's where the Fed will prop interest rates the most," Gross said.

Gross said Japan's fixed income market offers the best opportunity for fixed income investors. "The Japanese market is quite attractive and I expect it to do quite well."



  • Showtimes

    United States
    Monday - Friday 3:00P ET
    Monday - Saturday 21:00 CET
    Tuesday - Saturday 03:00 SIN/HK
    Tuesday - Saturday 05:00 SYD
    New Zealand
    Tuesday - Saturday 07:00 NZ
  • With almost 30 years experience in business television, Bill Griffeth is co-anchor of the 3 p.m. ET hour of CNBC's "Closing Bell."

  • Kelly Evans

    Kelly Evans is an on-air correspondent, reporting across CNBC's business day programming. She is co-anchor of CNBC's "Squawk on the Street."