Bill Gross — reiterating his now-famous critique of equities — told CNBC that while stocks are still likely to return more than most other asset classes, they would occupy a less cherished — and lucrative — place in investors’ portfolios.
Gross, founder and Co-Chief Investment Officer of Pimco, manager of the world’s largest bond fund, toldCNBC’s “Closing Bell”that a “30-, 40-, 50-year-old cult” of equities returning double-digits was nearing an end.
Investors, especially the “baby boomers” born after World War II, should brace themselves for lower returns. He differentiated between stocks as an asset class, and the unrealistic expectations some investors have about their potential for returns, which he called a “cult.”