Bill Gross is out with a love letter this morning, addressed to the central banks of the world who think negative interest rates are this cool and innovative new tool to help solve their problems. He warns that very soon capital gains will become ‘giant pandas’ and that GDPs need to start inching upwards, otherwise they’re all inexorably fucked.
“Capital gains and the expectations for future gains will become Giant Pandas – very rare and sort of inefficient at reproduction,” Gross said. “I’m saying that developed and emerging economies are flying at stall speed and they’ve got to bump up nominal GDP growth rates or else. Cross your fingers.”
Gross warned against investing in negative-yielding securities.
“The real market and the real economy await a different conclusion as losses from negative rates result in capital losses, not capital gains,” he said. “Investors cannot make money when money yields nothing. Unless… nominal GDP can be raised to levels that allow central banks to normalize short-term interest rates, then south instead of north is the logical direction for markets.”
Normalize rates or die, in plain terms.
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As an aside, no wonder Restoration Hardware earnings suck.
I went to their site for the first time (one is in Winter Park, Fl.) looking for an outside planter.
What a friggin’ joke. Their prices are outrageous (something the yuppies and millennials probably like- see Whole Foods).
I have a couple planters we recycled for flowers (made from antique tubs, pots, we bought for about $25 at a flea market).
Mine look better and are about 600% cheaper.
Millenials, lolz, don’t be a fuckhead, caddy, k?
K (hasty generalization?)
Gross is a bitter old prune. Rich, but bitter. Any CB losses get absorbed by the unwashed masses. I hardly think he gives 2 shits about us.
Regarding the above: respectfully u are not their target audience. Long from $44.00. CEO will fix it enuff for him & I to exit our positions in the $60s.. Then the store can be raped and pillaged by broke millennials.
You don’t think their stores will have already been burned and looted without any employee awareness, or whatever analogy the CEO used? Maybe the problem is that millennial-aged employees do the purchasing.
And all of you look into my eyes: he hardly needs me coming to his defense from peepants like you or helicopter Ben, but tradercaddy has been here forever, and he rules.
let’s pretend I sold the other half of my AAPL here at 109. that way it will go to 114.