Investors are playing a dangerous game, according to Pimco’s Bill Gross. In his monthly investment outlook, the bond king characterized central banks’ “medicine” of loose monetary policy as a “desperate gamble to promote growth.”
The Federal Reserve has launched three rounds of stimulus — or quantitative easing — since late 2008.
And its spigot of cheap money is largely responsible for the bull market of the last five years. The S&P 500 has more than doubled during that time. The consequence, according to Gross: “artificially priced assets based on artificially low rates.”
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