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Janus Capital's Bill Gross: I don't like most stocks, but I do like gold

Bond king Bill Gross doesn't like bonds anymore, instead turning his attention to physical assets and government-guaranteed funds.

The manager of the Janus Global Unconstrained Bond Fund said current conditions, with global central banks keeping interest rates low and in fact more than $11 trillion in sovereign debt now carrying negative yields, presents challenges to investors.

"If we see fiscal stimulation in Japan China and ultimately the U.S. after the election, I think we should be investing in real assets as opposed to financial assets," Gross told CNBC during a live interview Wednesday afternoon.

Earlier in the day, Gross released a letter to investors, warning them off stocks and bonds and advising them to look elsewhere for return.

He spoke of two investments specifically during the television interview — the American depositary receipt for SAB Miller, which is the top individual holding in his fund's portfolio, and the Blackrock Taxable Municipal Bond Trust. SAB Miller is likely to be acquired by Anheuser-Busch InBev. The trust is a closed-end that invests in Build America bonds and other government-related securities.

For investors still in the bond market, Gross recommends investors shorten their duration.

Investment decisions also will be impacted by the political situation, he said. He expects fiscal stimulus to gain traction at least after years of monetary easing have generated only modest growth in the U.S. and elsewhere.

The recently announced fiscal package in Japan, he said, is the beginning of "helicopter money" that could take hold elsewhere.