Pacific Investment Management Co.’s Bill Gross, manager of the world’s biggest bond fund, expects stocks and bonds to return less than 5% in 2013 as high unemployment persists, he wrote in a Twitter post.
Gross’s message reaffirms what he wrote this month in his December investment outlook, which said “structural headwinds” may lower real economic growth below 2% in the U.S. and other developed nations. The Standard & Poor’s 500 Index has gained 14% this year including reinvested dividends. The Bank of America Merrill Lynch U.S. Corporate and Government Index is up 5.2% in 2012, and gold has risen 4.8%.
Newport Beach, California-based Gross wrote in the post: “2013 Fearless Forecasts: 1) Stocks & bonds return less than 5%. 2) Unemployment stays at 7.5% or higher 3) Gold goes up.”
U.S. bond markets are scheduled to close early Monday and remain shut on Jan. 1 for the…
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