Bill Gross: What’s His Outlook for 2013?

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Obviously, Gross’s general bullishness on gold is a result of the Fed’s continuous monetary easing, but it’s worth noting that he doesn’t have a specific target. On the subject, he had this to say:

“We think gold will move higher, as well commodities; it’s hard to say exactly how much. Gold, to my way of thinking, is a function of real interest rates. To the extent that real interest rates have continued low […] ultimately it’s an asset that depends on inflation, to the extent that the Fed and other central banks can re-flate the economy […] a 10-20% return from gold […] is a thing of the past as well.”

Even more interestingly, Gross admitted that, in his opinion, “all asset markets are in this period […] in which less than double-digit returns are going to be the order of the day.”

As CNBC’s John Melloy points out, Gross’s optimistic calls on “high-rated credit, municipals, Treasury Inflation-Protected Securities, and higher-yielding equities” all underperformed the SPDR S&P 500 ETF Trust (NYSEARCA:SPY) this past year. We’d like to add, though, that most of the fund manager’s investment ideas typically sport lower volatility than the S&P.

Briefly mentioned on the last page, Gross’s Total Return Fund has a below-average beta in the past three (0.76), five (0.90), and ten (0.98) year periods.

Let us know your thoughts on the fund manager’s forecasts. For more coverage of these topics, continue reading below:

Inside Citi’s 2013 Agriculture Outlook

Is Gold’s 12-Year Run Over?

J.P. Morgan’s Best Ideas for 2013

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