Bill Gross , a widely followed investor once known as the bond king, said he's negative about both stocks and bonds, only seeing very limited opportunities in the market.
"I'd pass on stocks and bonds in terms of future total returns," Gross, the former chief investment officer and co-founder of Pimco, wrote in his new investment outlook blog.
Gross believes the Federal Reserve is unlikely to lower interest rates in a significant way in the face of inflation, so bond prices may not go higher anytime soon.
"Unless Chair [Jerome] Powell and company can significantly lower real 10-year Treasury rates from 2.25%, investors may eventually realize that bonds are a better deal than clearly overvalued stocks headed into an economic slowdown/recession," Gross said.
"Personally, I don't believe Powell will be willing or able to lower short rates significantly in the face of a 3% inflation future."
Persons:
Bill Gross, Gross, Pimco, Jerome, Powell, CNBC's
Organizations:
Federal, CNBC, Activision