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Investors 'Should Get Used to 1-2% Growth': Pimco's Gross
CNBC ^

Posted on 12/04/2012 4:42:40 PM PST by Red in Blue PA

Investors should get used to one to two percent economic growth for the foreseeable future, Pimco's Bill Gross told CNBC's "Street Signs" on Tuesday.

"We think that the United States is in a one to two percent growth environment going forward and investors should get used to it" as structural challenges keep growth in check, the Pimco co-founder and co-chief investment officer said.

Earlier Tuesday, Gross released his final investment letter for 2012, where he continued to warn about slower economic growth due to ongoing structural challenges such as high debt levels, a slower growing China and an aging workforce.

(Excerpt) Read more at finance.yahoo.com ...


TOPICS: News/Current Events
KEYWORDS: depression; fiscalcliff; obama; recession
When the rich get poorer, the poor get _______?

Who knew that we would look on the recession of the past few years as the "good ole days"?

1 posted on 12/04/2012 4:42:43 PM PST by Red in Blue PA
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To: Red in Blue PA

Pathetic. And who can forget that rotten Pelosi yammering on about unemployment during the Bush years...and her ‘jobs, jobs, jobs’ drone chant. ARRRRGGGGGGH>


2 posted on 12/04/2012 4:49:14 PM PST by SueRae (It isn't over. In God We Trust.)
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To: Red in Blue PA

“Investors should get used to one to two percent economic growth”

Well, I guess that means we’re all “1 percenters” now. Just not in the way we were hoping.


3 posted on 12/04/2012 4:50:24 PM PST by DemforBush (100% Ex-Democrat.)
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To: Red in Blue PA

Gross is an optimist.


4 posted on 12/04/2012 4:51:26 PM PST by Mr. Jeeves (CTRL-GALT-DELETE)
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To: Red in Blue PA

“and an aging workforce.”

To many of the younger workforce are relying on Santa Claus aka Obama for their cell phones, money etc.


5 posted on 12/04/2012 4:59:47 PM PST by Parley Baer
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To: Red in Blue PA

Better make that -3 to -4 percent a year, if not far worse. The transition to sovietesque Socialism by default will be grueling, like death by a thousand cuts.


6 posted on 12/04/2012 5:00:59 PM PST by pallis
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To: Red in Blue PA

This is nonesense. I just got 50k worth of double tax free state munis at just a tick under 5%. Any investor who is careful can make 4% or 5% in general oblgation bonds, Unit investment trusts, or other munins. You can even get them insured. The pimp from Pimco is a running joke in the industry.


7 posted on 12/04/2012 5:02:01 PM PST by LongWayHome
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To: Red in Blue PA

I wonder if undeveloped(farm) or even timber land would be a better investment.


8 posted on 12/04/2012 5:02:55 PM PST by MachIV
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To: MachIV

Lead, gold, silver, ammo, guns and land. Hard assets are the way to go.


9 posted on 12/04/2012 5:06:35 PM PST by Red in Blue PA (Read SCOTUS Castle Rock vs Gonzales before dialing 911!)
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To: LongWayHome

If you dont mind me asking, what states did you buy the bonds for and how do you get the insured ?


10 posted on 12/04/2012 5:22:30 PM PST by PMAS (All that is necessary for the triumph of evil is that good men do nothing)
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To: Red in Blue PA

This is what they want. They want us to get used to reduction in standard of living in exchange for being allowed to live and breathe and vote democrat. Next they will start relocating us into Soviet style high rises off mass transit routes to bring us to the work camps


11 posted on 12/04/2012 5:22:45 PM PST by plain talk
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To: PMAS

These are all Massachusetts bonds. You can ask about insurance when you talk to a broker. A deep blue state like Mass backs their bonds cause they have an endless supply of dupes who keep raising their own taxes. I would be careful about states like CA & IL.


12 posted on 12/04/2012 5:30:20 PM PST by LongWayHome
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To: LongWayHome

Thanks for the info, my son is my bond broker, I never asked about the insurance - I usually buy NY munis because it’s my home state.

I wouldnt buy IL or CA with someone else’s money :)


13 posted on 12/04/2012 5:33:53 PM PST by PMAS (All that is necessary for the triumph of evil is that good men do nothing)
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To: PMAS

The insurance will cut into your yield a bit, but if it makes you feel more comfortable you should get it; though you can’t get it on every issue. It gets me angry when I see people like Gross get out there & say this stuff when it’s just not true. It’s also important that retired people out here know that there’s someplace to go & still get decent yield.


14 posted on 12/04/2012 5:38:52 PM PST by LongWayHome
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To: LongWayHome

I will definitely look into the insurance, thanks for the tip.

As far as Bill Gross goes, I think he is talking about GDP growth, not yields.


15 posted on 12/04/2012 5:43:21 PM PST by PMAS (All that is necessary for the triumph of evil is that good men do nothing)
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To: Red in Blue PA

The tragedy is that this country could be thriving if we’d develop our massive energy reserves, curtail unions to allow businesses to set their own employment practices and prices, lower corporate taxes and regulations to encourage rapatriation of overseas profits and spur businesses to start spending the hundreds of billions of cash they’re sitting on, and dump Obamacare and its growth-killing taxes and regulations - if only if only.....


16 posted on 12/04/2012 5:45:22 PM PST by Intolerant in NJ
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To: PMAS

He is, but he’s also hiting at personal investments too. He’s as much this before in public. Lol, I just don’t like Gross:)


17 posted on 12/04/2012 5:47:40 PM PST by LongWayHome
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To: PMAS

He is, but he’s also hiting at personal investments too. He’s said as much before in public. Lol, I just don’t like Gross:)


18 posted on 12/04/2012 5:48:19 PM PST by LongWayHome
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To: Red in Blue PA

Are these growth numbers before or after considering currency inflation?


19 posted on 12/04/2012 5:51:39 PM PST by chrisser (Starve the Monkeys!)
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To: Red in Blue PA

the fact that growth will be 1% in the US, in a good year,
from now on, is not an issue of politics.

the issue is that the real estate market,
except in certain select areas,
is overbuilt,
has been for 20 years, and will be for
10 more years, or maybe 50.

on top of that, the same situation occurs in some places
worldwide, and is moving on to more.

get used to it.


20 posted on 12/04/2012 5:53:16 PM PST by RockyTx
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To: LongWayHome

I only like him because he bashes the printing of money by the Fed and too much government spending


21 posted on 12/04/2012 5:55:25 PM PST by PMAS (All that is necessary for the triumph of evil is that good men do nothing)
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To: Red in Blue PA

Go invest your money somewhere they’re not afraid of or opposed to growth.
These days all I can think of is the PRC - but be careful.


22 posted on 12/04/2012 5:58:34 PM PST by Little Ray (Get back to work. Your urban masters need their EBTs refilled.)
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To: PMAS

He’s made some terrible calls over the years. Way overrated.


23 posted on 12/04/2012 6:00:16 PM PST by LongWayHome
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To: Red in Blue PA
one to two percent growth environment going forward and investors should get used to it"

unless you are a congress critter, then you realize 30ish% returns.....

24 posted on 12/04/2012 6:23:17 PM PST by Cyclone59 (Obama is like Ron Burgundy - he will read ANYTHING that is on the teleprompter)
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To: Red in Blue PA

I’m there on the 2nd ammendment supplies and might inherit part of some undeveloped land; however, I’m convinced anyone buying physical commodities such as gold and silver are going to get ripped off.

There is absolutely no way all these organizations advertising gold on talk radio 24/7 are selling this stuff now for all the buyers in the future to turn around and re-sell it back to them for much more value. They would lose there rear-ends and they aren’t stupid.


25 posted on 12/04/2012 7:07:54 PM PST by MachIV
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To: MachIV

1-2% means no sense investing at all once inflation gets here. What do you think that will do to the economy??


26 posted on 12/04/2012 7:17:05 PM PST by GeronL (http://asspos.blogspot.com)
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To: Red in Blue PA

Not good for pensions predicated on 6% or higher growth. Of course, raise interest and the size of government debt will decimate the country.

At the same time, my taxes, food and health insurance are skyrocketing.

Happy days are here again.


27 posted on 12/04/2012 8:10:11 PM PST by Paraclete
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To: Red in Blue PA
That would be 1 to 2 percent nominal growth. Subtract 5 - 15 percent per annum inflation and we are talking serious economic contraction.
28 posted on 12/04/2012 8:44:19 PM PST by ProtectOurFreedom
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To: ProtectOurFreedom

-— That would be 1 to 2 percent nominal growth. Subtract 5 - 15 percent per annum inflation and we are talking serious economic contraction. -—

Doncha love fundamental transformation? Thanks Obots!


29 posted on 12/04/2012 8:58:49 PM PST by St_Thomas_Aquinas
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To: MachIV
"I wonder if undeveloped(farm) or even timber land would be a better investment."

You might want to have a look at the Drought Forecast first (drought forecast map there). From the Rockies, it appears to be a very large area extension of the drought that's been going on for several years.

http://www.cpc.ncep.noaa.gov/products/expert_assessment/seasonal_drought.html


30 posted on 12/04/2012 9:04:28 PM PST by familyop (We Baby Boomers are croaking in an avalanche of rotten politics smelled around the planet.)
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