April 16th, 2010, 9:00 am by Jon Lansner
Widely watched money manager Bill Gross, chief of the bond-trading team at Pimco in Newport Beach that made a killing by being early forecasters of the real estate debacle, now thinks real estate investments are a worthwhile investment.
According to CNBC.com, Gross told the business TV channel this morning …
Both commercial and residential real estate are reaching a bottoming point and possibly even prepared to turn higher, said Gross, CIO of Pacific Investment Management Co., or PIMCO, the world’s largest bond fund. With stocks likely to return 5 to 6 percent and bonds 3 to 4 percent, he said, investors would be wise to start looking at real estate opportunities. “Ultimately the riskier assets will be the less the risky assets,” he said. “I wouldn’t suggest moving into those particular sectors at the moment but ultimately risk and reward go together.” Lower debt and better lending rates will make real estate attractive, he added.
Back in January … Gross told us that rates won’t spike in 2010 as he won the “Bond Manager of the Decade” award from fund-watcher Morningstar.
We’ll try to see if Bill can add a little insight to these statements!