Central bankers have turned investing into a casino game with an unpleasant outcome likely, bond king Bill Gross said in his latest letter to investors.
The Janus Capital fund manager stepped up his criticism of institutions like the Federal Reserve, the European Central Bank and Bank of Japan, charging that the trillions in negative-yielding debt are presenting investors with unpleasant choices.
Recalling his days many years ago as a blackjack counter in Las Vegas, Gross reasons that "central bankers cannot continue to double down bets without risking a 'black' or perhaps 'grey' swan moment in global financial markets."
"At some point investors — leery and indeed weary of receiving negative or near zero returns on their money, may at the margin desert the standard financial complex, for higher returning or better yet, less risky alternatives," he added.
Among those potential choices: Gold, which has been a favorite option for Gross in recent months, and even digital currencies like bitcoin. He does not openly advocate that kind of choice but said it's the type of option investors might consider with central bankers suppressing financial conditions.