Bill Gross doesn’t like financialized assets for investors. He Told Bloomberg TV that folks should buy real assets.
For the art market, that raises an interesting question. Art and collectibles, sometimes called ‘tangible assets,’ tend to trade along gold and real estate. That suggests the market for tangible assets has the potential for growth:
“I don’t like bonds; I don’t like most stocks; I don’t like private equity,” Gross, who runs the $1.5 billion Janus Global Unconstrained Bond Fund, wrote in his monthly investment outlook Wednesday. “Real assets such as land, gold and tangible plant and equipment at a discount are favored asset categories.”
The views echo concerns expressed by managers including TCW Group’s Tad Rivelle and Oaktree Capital Group LLC’s Howard Marks as stocks reached record highs and bond yields plunged to historic lows amid sluggish economic growth. “Sell everything,” DoubleLine Capital’s Jeffrey Gundlach told Reuters last week. “Nothing looks good here.”
The things that look good to buy are what central bankers haven’t been purchasing, Gross said Wednesday in an interview on Bloomberg Television.
“Central banks have not bought a lot of gold,” he said. “They have not bought real estate to this point.”