Risky markets and an incapable central banking culture could drive investors into the arms of bitcoin and gold, billionaire asset manager Bill Gross opined in a recent note to investors.
Gross, who founded the Pacific Investment Management Co and now spearheads the Janus Global Unconstrained Bond Fund, dubbed markets a "casino", and said that low returns in an environment of zero-cost debt could ultimately push some investors to take their money elsewhere – thus risking further destabilization.
He wrote in a note to Janus investors, published today:
What that outflow might look like, Gross didn't elaborate on. However, he opined that markets are in a very risky position and that "it is capitalism itself that is threatened" by current central bank policies, which since the 2008 financial panic have pursued a strategy of low interest rates and the monetization of debt.
"Investors/savers are now scrappin' like mongrel dogs for tidbits of return at the zero bound," Gross wrote, concluding:
Image via Fox Business/YouTube
DISCLOSURE
Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.
The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.