Bill Gross, Pimco founder and much-watched bond guru, rang in the New Year by unveiling “2013 Fearless Forecasts” to the Twittersphere. Since he was limited to 140 characters per Tweet, we thought we’d help put his mighty words into context with a few charts.
[More from YCharts.com:Price-to-Cash Flow vs. PE Ratio: Way to Spot Unappreciated Stocks?]
[More from YCharts.com:Fund Flows Depict a Nation Cowering in the Basement, Afraid of the Stocks-Boogeyman]
Gross predicted that the 5-Year Treasury bond would end 2013 with a yield of 0.7%, barely changed from year-end levels.
[More from YCharts.com:Biggest Dividend-Paying Stocks of 2012 – And the Smart Choice Is . . .]
He expects stocks and bonds generally to return 5% in 2013.
The U.S. unemployment rate will stay at 7.5% or higher, he says.
While some of those forecasts may seem less than bold, they are simply broad strokes of Gross’ generally bearish views these days, which can be read in full detail on Pimco’s website. Sovereign debt, as well as high debt levels at financials institutions and in households, will make general economic growth very difficult, he says.
Part Two of Gross's predictions, illustrated in charts, is next.
Dee Gill, a senior contributing editor at YCharts, is a former foreign correspondent for AP-Dow Jones News in London, where she covered the U.K. equities market and economic indicators. She has written for The New York Times, The Wall Street Journal, The Economist and Time magazine. She can be reached at firstname.lastname@example.org.