Billionaire 'Bond King' Bill Gross says a Trump win would be 'disruptive' for markets
Will Trump's Win Shake Up the Bond Market?
Billionaire investor Bill Gross, known as the "Bond King," has expressed concerns that a second Trump presidency would be disruptive for the bond markets due to increased fiscal deficits from continued tax cuts and spending programs. Gross contrasts this with Biden's policies, which also involve deficit spending but are seen as less harmful in the long term. As the U.S. approaches the November elections, Gross has shifted his investment focus away from bonds to sectors like oil, gas, and tobacco.
How did Bill Gross describe the impact of Donald Trump's tax plans on the U.S. fiscal deficit?
Bill Gross described the impact of Donald Trump's tax plans on the U.S. fiscal deficit as harmful. He highlighted that Trump's tax cuts and spending programs would worsen the fiscal deficit, making a Trump presidency more disruptive for bond markets than a Joe Biden win. Gross emphasized that Trump's economic plans advocating for continued tax cuts and more expensive things would add to the already burgeoning U.S. deficits.
How did Bill Gross's views on the fiscal deficit change over time, as noted in his recent publications?
Bill Gross's views on the fiscal deficit have evolved notably over time. Initially, Gross expressed concerns about the fiscal deficit, which he attributed largely to a massive rollout of Treasury bonds. He acknowledged that such a deficit was necessary to propel the economy forward. However, his more recent views reflect a significant shift. Gross has become increasingly critical of the fiscal policies under Donald Trump's administration, particularly highlighting the negative impact of Trump's tax cuts and spending programs on the fiscal deficit1. He argued that a second Trump presidency would be more disruptive for the markets, especially the bond market, due to continued tax cuts and increased spending1. This change in perspective led Gross to move away from his famous bond strategy, declaring that "total return is dead," and instead, he shifted his focus to investments in oil and gas pipelines and tobacco stocks1.