Bill Gross, a bond fund manager said investors betting on a rally Trump and Trump noted the advantages of the rally is only temporary and as something deviant.
Bill warns that the rally Trump built on false promises of growth. Bill Gross is famous as King of bonds do not participate in the rally Trump yesterday and did not believe in the growth prospects Trump era.
Along start the invisibility of the economic team of President-elect Donald Trump, with the chosen former Goldman Sachs banker Steven Mnuchin as a candidate for finance minister, Gross said investors will be misled in a bet that promised tax cuts, infrastructure spending and deregulation will spur faster growth.
"The US dollar is strong and continues to strengthen, but demographically more of the US population older generation, will withdraw from globalization, and the accelerating rise in the debt ratio compared to GDP in almost all countries in the interest rate is now higher, producing only a productivity level of annual 1 percent and therefore real GDP growth [for the US] is only 2 percent, "he wrote.
"Investors should switch to cash and alternatives," said Gross, who manages $ US1.7 billion in mutual fund Janus Global Bond Fund unconstrained.
Jeffrey Gundlach, the other bond king who led DoubleLine Capital, also warned of the same thing.
"There will be regrets of those who joined the rally Trump," Gundlach said in an interview with Reuters. "The US dollar will go down, bond yields have reached its peak and will move sideways, the stock has reached its peak and gold will also rise in the not too distant future."
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