Salient to Investors:

Bill Gross at Janus Capital said:

  • The global economy is dangerously close to deflationary growth. Any whiff of deflation and things tend to reverse and go badly.
  • The CRB Commodity Index is lower than in 2008 when Lehman went bankrupt.  Oil, metals and crops have plunged due to the decelerating Chinese economy and gluts in multiple markets.
  • Commodity markets give a truer picture of the economy because they are subject to real-time supply and demand.
  • The Fed will raise by 25 basis points in September as it is mentally committed to moving before year-end, and despite the BoE voting 8-1 to keep its key rate at a record low until next year. A Fed 50 basis point increase would scare the market.

Read the full article at http://www.bloomberg.com/news/articles/2015-08-07/bill-gross-says-global-economy-dangerously-close-to-deflation

Click here to receive free and immediate email alerts of the latest forecasts.

On August 7, 2015   /   Bill Gross, Bond Market, Commodities, Global Economy, US Economy