The line of high-profile market practitioners who think the global economy is headed toward a slow growth, low inflation path is lengthening by the day. The president of Fortress was very vocal on the subject yesterday and Bill Gross is on board today. He says fscal tightening from Japoan, the euro zone and US will lead to slower growth and lower inflation, factors that will benefit…bonds! Mr. Gross’s specialty…
Hedge funds are liquidating positions to preserve capital, Gross confirms. He says markets are exhibiting a mini relapse into a flight for liquidity.
