Election Won't Help Sluggish Economy Much: Gross
Neither Hurricane Sandy nor the election will make much difference for the country's stunted economic growth, Bill Gross, Pimco co-chief investment officer, told CNBC's "Street Signs" on Thursday.
Pimco estimates that the effect of Sandy is a $20 billion to $30 billion economic loss, which would subtract one-half of one percent from economic growth in the fourth quarter.
But much of that loss will be made up in subsequent quarters as the affected areas rebuild, Gross said.
In the end, Gross expects Sandy to be a wash for both the stock and bond market.
"The bigger impact will be on the election and therefore the fiscal cliff," he said. Going over the cliff would slash one percent off economic growth, he warned.
Regardless of who wins the election, Gross expects stunted economic growth to continue.
"If we're looking at a 'new normal' economy of slow growth, then going forward asset markets have to reflect that growth and they have to reflect the zero percent interest rates," Gross said.
Gross, who earlier this year warned that equities would no longer enjoy the double-digit returns of the past, said, "We're looking at lower returns, it doesn't mean we're looking at bear markets. It means in terms of stocks and bonds, we're looking at three to six percent returns." (Read More: Bill Gross Is Latest to Join 'Stocks Are Dead' Club.)
He added, "This is not a double-digit type of returning market for any investor."