Bill Gross, Founder and Co-Chief Investment Officer - PIMCO
Says only 2 - 5% return from stocks and bonds in 2012!
Copyright 2011
Arrow Publications
ARROW PUBLICATIONS
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In a startling new interview on CNBC and reported widely in publications throughout the investment community, Bill Gross just stated his firm belief that "If you can get long-term returns of 5 percent from either stocks or bonds, you should consider yourself or your portfolio in the upper echelon of competitors."
He attributed such low return probabilities to his expectation that "It will be years before Euroland, the United States, Japan and developed nations in total can constructively escape from their straightjacket of high debt and low growth."
Are investors stuck with a 5%, or less, return ceiling for years to come?
Paul Kadavy, author of numerous top selling books on using option strategies to achieve double-digit investment returns, says: "Warren Buffett advised us over ten years ago that we should not expect investment returns of more than 5%, and now Bill Gross is singing the same tune. Then and now, investors have earned consistent double-digit returns using option writing strategies on their own without any need for advice from the 'experts.' These opportunities still exist for those investors who know how to do it."
He concludes that "Financial markets will remain low returning and frequently frightening for months/years to come." In another CNBC interview on January 11, 2012, he said that investors need to lower their expectations for returns, with 2% to 5% as good as we can get this year.
