Bill Gross is the former chief investment officer of Pacific Investment Management Co., was speaking on Bloomberg TV on Monday.
On the debt ceiling:
- “It’s ridiculous. It is always resolved, not that it is a 100% chance, but I think it gets resolved,”
- “I would suggest for those who are less concerned, similar to myself, that they buy one-month, two-month Treasury bills at a much higher rate than they can get from longer-term Treasury bonds.”
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On another matter, said that as the Federal Reserve fights to cool inflation back down to its 2% target, investors should own inflation-protected bonds through vehicles such as the Vanguard Short-Term Inflation-Protected Securities ETF (VTIP) and the iShares 0-5 Year TIPS Bond ETF (STIP), which are far more liquid than the securities themselves. “I’ve found it’s much easier to get in and out on these ETFs,” Gross said.
Gross
