Bill Gross, portfolio manager of the Janus Capital Group Global Unconstrained Bond Fund strategy (of Pimco and the Bond King fame), penned a Comment in today’s US print edition of the Financial Times. It is titled, “Central Bankers are Threatening the Engine of the Economy.”
He explains how low and negative interest rates are distorting normal market behavior and quantitive easing has basically resulted in a richer investor class through share buy-backs and M&A rather than increased capital investment for longer term growth.
In a nutshell Bill Gross sees the same thing I do: Internet rates are a spent force and uncreative destruction. I am pleased to be in such company 🙂