Bond King' Bill Gross Warns of Potential Recession and Overvalued Stocks Bill Gross, renowned as the “Bond King” and a billionaire co-founder of Pimco, expressed significant concerns about the current state of the stock market and the broader U.S. economy. Highlighting overextended stock valuations, he warned of a potential major recession if the Federal Reserve does not lower interest rates this year. Gross pointed out the incongruity of the S&P 500’s record highs, given a price-to-earnings ratio around 19 and a real interest rate of 1.8%. He emphasized that the Federal Reserve’s interest rate hikes, from nearly zero to over 5% since early 2022 to tackle inflation, have not led to a material decrease in stock valuations. This situation, Gross argues, risks a debt spiral and necessitates a shift towards safer assets, potentially impacting investments in stocks versus traditional safe havens like bonds, gold, and silver. « Previous Article Next Article » Share This Article Choose Your Platform: Facebook Twitter Google Plus Linkedin Related Posts US Mortgage Rates Dip Slightly to 6.63%, Offering Hope to Homebuyers READ MORE Gold Prices Dip as Middle East Conflict Cools, Market Eyes Upcoming U.S. Economic Indicators READ MORE World Bank Raises Global Growth Forecast to 2.6%, Citing U.S. Economic Strength READ MORE NYCB Sheds Mortgage Servicing Arm in $1.4B Deal with Mr. Cooper READ MORE Gold Prices Rise for Fifth Week Amid Iran-Israel Tensions READ MORE Add a Comment Cancel replyYour email address will not be published. Required fields are marked *Name * Email * Save my name, email, and website in this browser for the next time I comment. Comment