Bill Gross, the billionaire bond guru of Janus Capital, spoke about his fixed income strategy and his favorite stock picks for the months ahead in an exclusive video for PRO subscribers.
Among his preferred holdings, the investor recommends mortgage REITs, or real estate investment trusts, as viable investment opportunities.
"They are basically banks without the infrastructure of a bank," Gross said. "They buy government-guaranteed mortgage paper, and finance it at 1 percent while they earn 3 percent." On top of that, he highlights that some of these companies pay upward of 10 percent in dividend yields.
Some of the topics discussed with CNBC's Brian Sullivan include:
- Why he thinks "all" financial assets are overvalued.
- His "secret" strategy to beat the market.
- Where he finds investment opportunities and what's his portfolio structure.
- The long-term effects of negative interest rates.