Salient to Investors:
Bill Gross at Pimco said:
- Structural headwinds in terms of economic growth, the budget deficit, and the fiscal cliff will dominate the economic debate no matter who wins the election – meaning lower growth due to the excessive debt and leverage built up over 10 or 20 years.
- Future annual stock gains will be 4 – 5 percent, bonds 2 – 3 percent. Aging investors prefer bonds over stocks
- Markets suggest Romney will be better for equities because taxes on dividends and capital gains won’t be going up as much as under Obama. Republicans have never been a tight-money party so suggestions they would pursue tight money policies is political rhetoric. Carter appointed Volcker, Nixon abandoned the gold standard, Bernanke was appointed by George W. Bush.