Pimco’s Gross: Recession Risks More Likely Than Sluggish Growth

Recession may become more likely than an extended period of sluggish growth and high unemployment rates, says Bill Gross, founder of Pimco, the world’s largest bond fund.

Since 2009, Gross has said the U.S. and other developed economies were entering a period of what he calls a “new normal,” a period marked by lackluster economic performance but still one of growth.

Now it’s worse, but not too late to change.

“Sovereign balance sheets resemble an overweight diabetic on the verge of a heart attack,” Gross writes in a monthly investment outlook posted on Pimco’s website.

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via Pimco’s Gross: Recession Risks More Likely Than Sluggish Growth.

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