Legendary fund manager makes bold stock market prediction
Here's what could happen to stocks next.
The stock market has rallied sharply since President Trump paused reciprocal tariffs on April 9. It recouped steep losses after those tariffs were proposed on April 2, so-called “Liberation Day.”
The S&P 500's rally has happened despite data suggesting a potential slowdown in the U.S. economy is underway and heightened recession risk due to remaining tariffs, including a staggering 145% tariff on China that’s got multinational companies like Amazon rethinking their guidance for the rest of the year.
Related: Billionaire Bill Ackman sends hard-nosed message on China, U.S. trade war
Now that the relief rally has lifted stocks back to levels where short-term indicators flash overbought, investors wonder if they should still ‘buy the dip’ or ‘sell the rip.’
The current stock market set up has caught the attention of veteran Wall Street bond manager Bill Gross, who has been tracking markets professionally since 1971.
Gross co-founded Pacific Investment Management Co., or PIMCO, a major asset manager with $2 trillion under management. His role managing PIMCO’s massive $270 billion Total Return Fund earned him the “Bond King” nickname before he joined Janus Henderson Investors, where he worked from 2014 to 2019.
