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.
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:
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