The Fed's missteps will bring drastic growth in this asset, predicts well-known billionaire Bill Gross

Often, in connection with the fall in the thu, there is talk of growth in various types of shares and sectors. But this time, a well-known billionaire comes up with a completely different prediction. What is it?

Bill Gross expects this asset to grow

Who is Bill Gross?

Bill Gross is an American investment manager and philanthropist who was born in 1944 in Middletown, Ohio. Gross is best known as the co-founder and former head of Pacific Investment Management Company (PIMCO), an asset and bond management fund.

Gross studied psychology and economics at Duke University and earned a master's degree in economics from the University of California, Los Angeles (UCLA). In 1971, along with four other investment managers, he founded Pacific Investment Management Company (PIMCO), which became one of the world's largest asset managers.

At PIMCO, Gross was the chief investment officer and head of an investment team that managed more than $2 trillion in assets. However, he left the company in 2014 to join rival Janus Capital Group. Gross was known for his successful bond investment strategies and his ability to anticipate economic trends and fluctuations in the financial markets. And that's what he's trying to do now.

In addition to his work in finance, Gross is also an active philanthropist and supports various charities and programs in the areas of education, healthcare and culture. He is also the author of several books and frequently appears in the media as a commentator on current economic and financial events. In 2016, it was estimated that his net worth was more than $2 billion.

What does he say?

According to billionaire Bill Gross, Treasury bonds appear to be a risky investment for now , but if the Federal Reserve eases interest rate hikes, they could soon rise.

U.S. Treasuries are still overvalued, he said, but could rise with future Fed easing, the Pimco co-founder , known for his weakness for bonds, said on Twitter on Thursday.

https://twitter.com/real_bill_gross/status/1641535541933121536

Treasury bond prices have fallen sharply in the past year, causing yields to spike when prices fall.

The sell-off has been fueled by a year of aggressive tightening by the Fed - because when borrowing costs rise, investors can achieve better and less risky returns by parking their money in savings accounts.

But Gross now expects the central bank to start easing up in its fight against inflation after the fall in bond prices stoked fears of a financial crisis. So did many other investors.

Many investors believe there must be a turnaround from the Fed after such a run. Source

What are U.S. Treasury bonds?

U.S. Treasury bonds are bonds issued by the U.S. government that are used to finance federal budget spending. These bonds are considered a safe and stable investment option because they are backed by the full faith and credit of the US government.

U.S. Treasury bonds are issued in a variety of maturity lengths, typically from 1 to 30 years. Bonds with shorter maturities are usually less profitable, while bonds with longer maturities have higher yields. The yields on these bonds are set at issuance and are calculated based on current market interest rates. Investors may purchase U.S. Treasury bonds through auctions, direct purchases from government agencies or through the purchase of bond funds. Bonds are generally low risk and are considered a safe investment, but returns on these bonds can be affected by inflation and changes in interest rates.

U.S. Treasury bonds are also considered a benchmark for other bonds in the market. Therefore, the yield on U.S. Treasury bonds is often used as an indicator of the current interest rate in the market.

Disclaimer: This is in no way an investment recommendation. It is purely my summary and analysis based on data from the internet and other sources. Investing in the financial markets is risky and everyone should invest based on their own decisions. I am just an amateur sharing my opinions.

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