The Death of Equities

[kidgas]

Interesting article:

Bill Gross, the $747 billion bond man, declares the death of equities - Daily Finance

I am not quite sure what to think, yet.

 

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[MattThomas]

I think the viewpoint is a little slanted...firstly it is coming from someone who is very big on buying debt. It comes as little surprise that he thinks that equities are dying if he has such a strong preference to bonds to begin with.

This quote stuck with me:

"Gross's view, growth prospects are so dim that there is no point in owning stocks since common stock investors will not benefit when there's no economic growth."

Sure, this is true when there is no economic growth, but what about when the economy starts growing again? By saying that equities are dying means that he is suggesting that we wont be having any more economic growth. If that is the case, we have a lot more things to worry about than the death of equities.

Perhaps a more appropriate title for this article is "Equities are in a coma". Still, I don't think that statement is accurate.

 

[Rickson9]

Interesting article:

Bill Gross, the $747 billion bond man, declares the death of equities - Daily Finance

I am not quite sure what to think, yet.

It is always interesting to look back. The first post was pretty much when I went on a buying spree picking up American Eagle, Fossil Watches, The Buckle and other retailers that powered my portfolio to a 31% return in 2009 and a 32% YTD return in 2010.

When the media says that an investment is a bad idea, always look into it!

Best regards.

 

[365]

"If I understand him correctly, he views stocks as the bottom of the liquidation hierarchy"
And that guy has his own VC firm and writes books about the global flow of capital?

I'm sure he's a smart guy but the blog entry reads like it's been written by the intern.

I would agree with the view that the stock market in general may not be a great investment for the next decade or so.

 

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