Midnight Candles

Bill Gross writes:

Investors must recognize that if assets appreciate with nominal GDP, a 4–5% return is about all they can expect even with abnormally low policy rates. Rage, rage, against this conclusion if you wish, but the six-month rally in risk assets – while still continuously supported by Fed and Treasury policymakers – is likely at its pinnacle. Out, out, brief candle.

2 thoughts on “Midnight Candles

  1. Hey Mike-U.S corporate profits have actually been LOWER than nominal gdp the last 100 years.Would’nt this imply that stocks are even more overvalued than Gross states?

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