Bill Gross: Don’t Downplay Greece

A Greek exit from the euro zone could “discombobulate” currencies and open the door for contagion to other heavily indebted nations, bond investor Bill Gross said Wednesday.

The cash-strapped European nation’s struggles matter despite markets’ perceived resistance to its ongoing debt negotiations, Gross contended. He noted that if Greece left the euro zone, it would only lead to speculation swirling around Portugal, Spain or Italy.  “I think it matters because markets interpret events on a forward basis,” said Gross, manager of the Janus Global Unconstrained Fund.

In an interview on CNBC “Power Lunch,” Gross noted that projecting economic growth in the euro zone is difficult, especially because it depends on the effectiveness of the European Central Bank’s bond-buying program. The ECB’s easy policy does not necessarily make 2 to 3 percent growth in euro zone nations a “slam dunk,” Gross said.