Janus Capital's Bill Gross is out with his latest

Bill Gross writes about negative rates in his latest investment outlook. He delves into the 30-40% of developed market bonds that you have to pay to own and how that filters through to the rest of the financial asset world.

"Who cares about [bonds], buy high yield bonds or even stocks to avoid Zeno's paradoxical trap. No! All financial assets are ultimately priced based upon the short term interest rate, which means that if a [German 5-year bondholder] investor loses money, then a stock investor will earn much, much less than historically assumed or perhaps might even lose money herself," he writes.

He focuses on nominal GDP growth and said the Fed needs to boost it 1-2% by 2017 or capitalistic business models will go south. It's a similar challenge for other central banks.

"Investors cannot make money when money yields nothing. Unless real growth/inflation commonly known as 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," Gross writes.

Read the note here (pdf).