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Bond Guru Bill Gross’s 2013 Predictions in Charts (Part Two)

Dee Gill

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.

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WTI Crude Oil Spot Price Chart

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Gross says the price of oil will be above $100 “at some point in the year.”

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Gold Price in US Dollars Chart

The price of gold will go up and the value of the dollar will go down, 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 One looked at Treasury rates, stocks and the unemployment rate.

US Public Debt as % of GDP Chart

China’s fast economic growth of recent years has fueled corporate profits for companies like YUM! Brands’ (YUM) KFC chain. The slowdown in growth there and in Europe will depress the company’s gains.

Technology has succeeded in decreasing the number of workers needed, and unemployment will remain high. Finally, an aging population means less spending in the economy, as older folks consume as many new cars and houses as the young.

No wonder Gross decided to show his future in a couple of Tweets. This all sounded much less depressing in less than 280 characters.

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 editor@ycharts.com.

YCharts is a financial terminal for the web, with advanced stock charts, an innovative stock screener and the largest database of economic data on the web.