Gross, Seeing Stocks Plunging 10%, Urges Flight to Cash
- Manager: 'Investors need cold water splashed on their face'
- U.S. equities to enter 'bear market' in next 12 months
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Bill Gross, who in January predicted that many asset classes would end the year lower, said U.S. equities have another 10 percent to fall and investors should sit out the current volatility in cash.
The whipsaw market reaction to the lackluster U.S. jobs report last week shows that markets, especially stocks, high-yield bonds and some emerging market debt, are trading like a casino, Gross said in an interview on Friday. He was speaking from a cruise ship which had taken shelter near New York City amid stormy weather over the Atlantic.