Bill Gross, the "old debt king" who once ran PIMCO's super-large fund, said on Monday that he preferred value stocks as fiscal stimulus and deficit expansion weakened, and investors should turn to "previously avoided" assets such as tobacco, banks and European stocks.

He said in his latest investment outlook report that whether the COVID-19 vaccine is available or not, there are few opportunities to make money in the world. At present, even if the US fiscal stimulus has not been completely withdrawn, most of it has weakened. If we continue to stimulate the economy, it will result in a fiscal prick of $5 trillion to $6 trillion, and it would be unacceptable to support quantitative easing of such a deficit size (unacceptable proportions).

He suggested that for non-day traders, attention should now be paid to tobacco, banks and even stocks in the European market, which have not soared in anticipation of an economic recovery and lower real interest rates.

Mr Gross says the sharp fall in real interest rates has contributed to the rise in growth stocks. Given that interest rates are hard to fall further, giants such as Microsoft Corp, Apple Inc and Amazon.Com Inc may have "seen the best days" (have seen their best days).

Gross said he was optimistic.$Altria Group Inc (MO.US) $、$International Business Machines Corp (IBM.US) $、$AbbVie Inc (ABBV.US) $、$Enterprise Products Partners LP (EPD.US) $Waiting for the company.

In addition, in an interview with Bloomberg on Monday morning, Gross suggested careful use of leverage to increase returns by investing in stocks that are currently depressed but with stable dividends (relatively firm dividends). Central banks are unlikely to raise interest rates in the foreseeable future, reducing the risk of leveraged trading.

"the Fed is a dog, and the Treasury is manipulating it," Gross said. "will there be inflation? Very likely. "The Fed is the dog and the treasury is wagging it," said Gross. "Is it inflationary? Probably yes. ")