CNBC Writes: Gross: The stock market and asset prices are ‘bubbly’

 

Bill Gross, the co-chief investment officer of Pimco, said he thinks the stock market and “all asset prices are bubbly.”

“Bond prices, stock prices … and profit margins are bubbly to the extent that [if] any of them can be sustained, I guess, is the ultimate test,” Gross said on CNBC Wednesday.

He said the Federal Reserve‘s QE program is a “rather blunt instrument in terms of elevating, and perhaps, bubbling stock prices.”

“Margin debt is at historic levels to the extent that they want to simmer down equity prices [but] they don’t have to attack it through tapering … they can raise margin requirements.”

“The bond market is bubbly because the policy rate at 25 basis points is artificially suppressed. Investors and savers are not receiving what they have historically … in historical terms would probably be around 2 to 2.5 percent,” he said.

I have very little to add here. Mr. Gross is right on the money. I have been saying this for a while as well, everything is overpriced. Big time. The only thing I will add into the mix is my timing and mathematical work. Once again, it is predicting the beginning of a severe Bear Market that will only end  in 2016. There is no stopping it. 

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