Market Overview

Bill Gross Warns Of A 'Global Marketplace In Which Prices Are Artificially High'

Bill Gross Warns Of A 'Global Marketplace In Which Prices Are Artificially High'

Bill Gross, Janus Capital Management's famed fund manager discussed global systemic risk during an interview on Bloomberg TV.

Gross said he is concerned we are facing a "global marketplace in which prices are artificially high." He added that he is also concerned about China's debt level which appears to be increased at an "almost geometric pace" relative to its GDP.

Related Link: Barron's: Bill Gross On Interest Rates

"The expansion of debt relative to GDP, not just in China, but elsewhere is really symptomatic of the risk that we have in terms of financial markets to the extent that investors can be convinced that they are relatively risk-less as in the ECB [European Central Bank] buying corporate bonds and the Japanese buying corporate bonds and stocks as well," Gross added.

Gross continued that "intelligent" investors should know there is "something really wrong with the system" and the "artificial system might implode." He added that the "guessing game" of when such an event might occur has been extended to 2017, 2018 or 2019.

"At some point the system could suffer an implosion," he concluded.

Posted-In: Bill Gross Bloomberg China Debt Global Systematic RiskNews Global Econ #s Media Best of Benzinga


Related Articles

View Comments and Join the Discussion!
Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Premarket Activity
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Daily Analyst Rating
A summary of each day’s top rating changes from sell-side analysts on the street.
Fintech Focus
A daily collection of all things fintech, interesting developments and market updates.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at