Gross Sees Stocks Beating Bonds in Near Term

PIMCO’s Bill Gross is known as the “bond king”, but he tells CNBC that he expects stocks will fare better than bonds in the next few months. “I think stocks,” Gross said when asked whether stocks or bonds will outperform over the next three months. “Let’s suggest that the economy looks good, that risk assets — whether it’s high-yield bonds or whether it’s stocks — have a decent return relative to the potential for declining bond prices. I’ll go with the stock market.” He says the bond market faces headwinds from the new healthcare bill, which will add to an already hefty deficit.

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