One of the biggest names in the investment world is calling President-elect Donald Trump a total disaster for the economy.
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Bond investor Bill Gross said he questions Trump’s pledge of a 3-to-4% GDP growth rate by lowering taxes.
“With Trump’s polices and let’s talk about taxes and lower corporate taxes, supposedly promises 3-to-4% GDP economy as opposed to a 1.5-to-2% Obama economy, but I question that,” Gross said on FOX Business Network's Countdown to the Closing Bell.
The ‘bond king’ thinks Trump’s proposed 15% corporate tax rate is unnecessary.
“Yes, we have a 35% marginal tax rate but really an effective 24, 23% tax rate that’s amongst the lowest in the world,” he said.
Gross said the recent gains in stocks may potentially be attributed to the 3-4% growth rate Trump has pledged and believes reducing corporate taxes would increase corporate earnings.
Despite a $1 trillion lost in global bonds since election night, the legendary investor said Janus Global Unconstrained is not solely focused on bonds.
“The key has been in the last week not to be in bonds. As you mentioned, they are up by 30 or 40 basis points on the tenure and the key is to be in risk assets especially equities,” said Gross, who manages the Janus Global Unconstrained Bond Fund.