Gross Says Global Selloff Shows Failure of Central Bank Efforts
by John Gittelsohn
Bloomberg.com
The rout in global markets is being triggered by investors seeking to reduce leverage as central bank efforts to prop up economies have little effect, according to Janus Capital Group Inc.’s Bill Gross.
“Markets sense this lack of growth potential and observe recessions beginning in major emerging-market economies,” Gross, who manages the $1.3 billion Janus Global Unconstrained Bond Fund, wrote in an e-mail. The markets are attempting to balance value at risk “on a daily basis reducing risk but lowering prices.”
U.S. stock markets were down more than 3 percent on Wednesday and off by more than 11 percent this year, hurt by falling oil prices and a rush to havens such as U.S. Treasuries.
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Source: http://financialsurvivalnetwork.com/2016/01/gross-says-global-selloff-shows-failure-of-central-bank-efforts/?utm_source=rss&utm_medium=rss&utm_campaign=gross-says-global-selloff-shows-failure-of-central-bank-efforts
