Skip to comments.Bill Gross: "Normal" Economic Growth Impossible Now: 90% of the Media Now Controlled by 6 Companies
Posted on 08/23/2012 3:04:20 PM PDT by lbryce
Legendary market maven Bill Gross, the so-called "King of Bonds," said investors will flat-out lose money if they continue employing the "buy and hold" strategies of the past.
In his August Investment Outlook, Gross told investors that "financial repression, QEs of all sorts and sizes" and low interest rates will "dominate the timescape" for decades, maybe longer.
Investors must adjust to the new world order to avoid being the loser in this zero-growth environment, Gross warned.
Ultimately, Gross said, the stock market's historical, inflation-adjusted 6.6% annual growth rate is unsustainable.
Gross, of course, is a bond man.
In March, he launched an ETF version of his popular Pimco Total Return Fund (PTTRX) - the world's biggest mutual fund, with more than $260 billion in assets. The Pimco Total Return ETF (NYSE: BOND) quickly attracted $2.1 billion in total deposits and has outpaced the S&P 500 by more than 5% so far.
But even bonds - both government-backed and corporate - can't escape the realities of a no-growth economy.
According to global economic trend forecaster Chris Martenson, a former VP of a Fortune 300 company, the historical growth rates investors have come to expect - in every asset class - are no longer mathematically possible.
"Right now, there are dangerous economic constraints," he said, "mainly created by failed government policies, which show exponential growth in our markets is impossible."
Martenson's analysis is gaining widespread attention this month, after appearing in a newly released documentary that went viral in July. ("Conquer the Pyramid," produced by an Emmy Award-winning director, premiered online July 14, 2012.)
Martenson and a team of scientists, economists, and geopolitical analysts recently conducted a thorough investigation into the sustainability of exponential growth. They're findings revealed a startling pattern.
This pattern, Martenson says, shows that not only is market growth unsustainable - but a crash is imminent.
It's a catastrophic pattern in the markets," Martenson said, "one we believe could soon hasten an economic collapse - a chain of events that could lead to massive inflation, the swift fall of the dollar, and a total halt to the way we currently live our lives."
The mysterious pattern was so alarming, according to Martenson, the team presented their research to the United Nations, 16 world governments, and to Fortune 500 companies.
They've concluded this catastrophic pattern is not limited to the stock market...
You've heard this too many times already , so what's cone more time gonna do?
WE ARE ALL SCREWED!!!
I hear people quote their success in the 80’s and 90’s to me all the time. Yeah, I was successful back then, too. Very much so.
This is a whole new ballgame, now.
Just exactly what does that mean? Mr, Gross, should we "adjust" by buying bonds, gold, real estate, bags of rice, or what? Or should we just sit around and be worried?
I hate videos like this that try to scare you death and go on and on and on before they tell anything of substance.
What does 90 percent of the media being controlled by 6 companies have to do with anything in the article?
Very diversified manufacturing and agriculture is needed: millions of small shops and operations. Otherwise, eventually, everyone starves.