Billionaire investor Bill Gross says ultra-low yields mean bonds are ‘garbage’ – and says stocks could soon be trash too

Billionaire investor Bill Gross says ultra-low yields mean bonds are ‘garbage’ – and says stocks could soon be trash too

Famed investor Bill Gross has said sky-high prices and ultra-low yields mean bonds are "investment garbage" - and warned that stocks could soon become trash if company earnings fail to impress. Gross said in his this week that bond yields - which move inversely to prices - should rise sharply over the next year, causing losses for investors in the assets. "Cash has been trash for a long time but there are now new contenders for the investment garbage can," he wrote. "Intermediate to long-term bond funds are in that trash receptacle for sure." Gross cofounded investment giant Pimco in 1971 and was once widely known as the Bond King. The 77-year-old retired from professional investing in 2019. He said the yield on the should rise to 2% over the next 12 months from the current 1.29% level, as the Federal Reserve cuts back on its asset purchases in response to strong growth and inflation. Such a rise would cause losses in the region of 3% for investors, Gross said. Gross also said he thinks stocks could soon be seen as "garbage" too, hinting that he thinks stock prices are worryingly high. "Earnings growth had better be double-digit-plus or else