Bill Gross, the old bond king, said in a recent interview that allowing Trump to be re-elected as president would be a more negative choice for the bond market.
Gross said: Trump is the more negative candidate among the candidates because his plan advocates continuing to cut taxes and increase prices. This will increase the already rapidly growing U.S. deficit.
He said that the current government\’s spending also far exceeds the revenue it receives through taxes. But for the bond market, Trump\’s election will be more damaging.
As the federal deficit continues to expand, the U.S. Treasury Department issues large amounts of bonds.
The U.S. Congressional Budget Office predicts that the deficit will reach $1.6 trillion in fiscal year 2024.
Gross said: The deficit is the culprit; $2 trillion in annual supply growth … will put some pressure on the market.
He also took a pessimistic view on the stock market, saying investors need to temper their expectations. Don\’t expect the S&P 500 to maintain the 24% return it did last year.
Bond king Gross warns: Trump’s election will be more negative for the bond market
Bill Gross, the old bond king, said in a recent interview that letting Trump be re-elected as president would be a more negative choice for the bond market.
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