If you were looking for any investment with double-digit returns, you're out of luck, Pimco co-CIO told CNBC Tuesday.
"There are no double-digit returns in any asset class" including stocks, bonds and real estate, Gross said, and won't be for the next few years.
In a weak economy "corporate profits can't keep on increasing," he said.
"If you can only grow an economy by 0 to 1 to 2 percent, basically your corporate profits freeze and in many cases they go down," said the Pimco founder, whose company has $1.3 trillion in assets under management. "That’s what we call the 'stall effect.' To the extent that you can’t grow any faster than 1 to 2 percent, which we call the new normal, then corporate profits are really threatened going forward."
In his October outlook, Gross said there are three "structural hurricanes" affecting the economy — globalization, which has hollowed out the labor market; technology, which has outdated entire industries; and an aging population that favors saving over spending.
Globalization is the most immediate problem, Gross told CNBC.
"Policymakers may be killing their golden goose, in this case the American worker, whose household income at $49,000 is the lowest in a decade," Gross said. Jobs leaving the U.S. affects employment levels and future economic growth. Without the wage earner, Gross said, there is "very little in terms of the potential for consumer growth and economic growth going forward."