The election outcome in November won’t matter much to markets, according to PIMCO co-founder Bill Gross. He told CNBC’s Futures Now online show today that he sees neither Barack Obama or Mitt Romney offering much of an advantage to markets:
Host Jackie DeAngelis: Your pick on who’s going to be better for the markets Bill.
Bill Gross: I fail to see that either one would have an advantage over the other. I basically think that Republican or Democrat, red or blue, basically have initiated the same policies over time. We basically need a new way. We’re not going to get a new way in November, but I favor neither candidate.
Gross was also asked about his outlook for gold in the current market.
“…Gold is an asset that’s favored relative to those negatively yielding instruments and so if we continue to see this environment going forward, then gold which is the alternative to printing money basically, which the Fed has been doing, the ECB has been doing, the Bank of England has been doing — it’s simply a hard currency alternative to what’s been going on the last few years.”
Gross also provides his views on Treasuries, stocks vs. bonds, and why the U.S. dollar does not have an “unlimited franchise” on its reserve currency status.