It's not just equities, the cult of bonds is also dying, declares Pimco's Bill Gross. “The age...

|By:, SA News Editor

It's not just equities, the cult of bonds is also dying, declares Pimco's Bill Gross. “The age of credit expansion which led to double-digit portfolio returns is over,” Gross says. “The age of inflation is upon us, which typically provides a headwind, not a tailwind, to securities price – both stocks and bonds.” We have to adapt to a “new normal,” which means no more “super-size" market returns.