Bill Gross Believes in High Quality Dividend Paying Stocks for the Long Term
Bill Gross, co-founder of PIMCO, and considered one of the foremost experts on the markets, told CNBC’s Futures Now host Jackie DeAngelis stocks and bonds should do well in the current environment. The Fed is writing checks for hundreds of billions of dollars, actually $80 billion a month in quantitative easing, which props up bonds in terms of their prices and lowers their yields, but it props up stocks as well, he said.
Gross said the better market over time would be high quality stocks paying two to three percent in terms of a dividend yield. Stocks are certainly more attractive than a 10-year Treasury paying 1.7%, but both of them are “bubbled” to a certain extent by what the Fed is doing, he added.
Back in July, Gross generated some controversy when he claimed the “cult of equity” was dying (link).