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.
Read the full article at http://www.bloomberg.com/news/2012-10-25/gross-says-structural-headwinds-to-dominate-after-u-s-election.html