FX168 Financial News (North America) News On Thursday (October 10th), despite this year's record-breaking stock market rebound continues to impress Wall Street, billionaire investor Bill Gross is not sure if the bull market can last for a long time. # Out look for the market in the second half of 2024 #
According to the latest report from the so-called 'Bond King', as momentum weakens, investors should reallocate to defensive and high-yield stocks. He also recommends reducing investments in fixed income, having previously criticized the current US bond situation.
Gross said, 'While it's not a bear market, it's no longer a bull market.' He added that the future stock market will achieve a 'buy low, positive' return.
Gross also listed his current top four favorite investments:
The first is the electrical services company Allete, whose stock price has risen 5% so far this year. He said this is an acquisition deal that will rise by 10% in the next 12 months.
Gross also heavily promotes various limited partnership channels, often emphasizing them as beneficial alternatives to bonds. He pointed out that MLPs provide an 8% tax-deferred yield. As early as May, he said MLPs are 'almost as good as ai'.
When discussing the theme of bond alternatives, Gross also mentioned high-yield mortgage-backed securities.Real Estate Investment TrustFund (REIT) Annaly Capital Management.
He also considers municipal income funds to be a worthy investment, as many funds offer tax-free yields of over 7%. Gross cites the DWS Municipal Income Trust Fund as an example, but he points out that there are 20 to 30 other funds to choose from.
He said: "7% may not continue indefinitely, but currently these funds have trading rates of 6-8%."
Gross did not predict a stock market crash is imminent, but rather mentioned a series of unfavorable factors on the horizon. These factors include overvaluation, a series of macroeconomic and geopolitical factors.
Gross specifically points out that if Kamala Harris is elected president, corporate taxes will increase, and if global tensions continue to escalate, economic growth will be hindered. Rising deficits – an issue repeatedly warned about by investors – will ultimately curb spending.
Gross also mentioned the record cash reserves held by legendary investor Warren Buffett, which some see as a sign of an imminent substantial market sell-off. For Gross, this at least portends "rough road ahead".
He also listed some positive factors in the report that can offset the above unfavorable factors, such as decreasing inflation and continued investment in artificial intelligence.
