Bill Gross: The â€˜new normal' may be to avoid mos
"You want to look for stability of income and growth," the company's managing director and chief investment officer said at a meeting of local investors in Costa Mesa, Calif. "That probably doesn't mean bonds."
He said he was personally buying stock in AT&T Inc. and Verizon Communications Inc., for example, both stable companies that pay a 6% dividend.
"You can at least bank that dividend" if markets don't cooperate, he said during the meeting, which was sponsored by Women Investing in Security and Education, an Irvine, Calif.-based investor group.
Mr. Gross also suggested that attendees look at Pimco's closed-end-bond funds, with their 10% yields.
With credit spreads narrowing, Mr. Gross said, all types of bonds have become "Treasury-like.”
“The markets have been ‘derisked,'" he added.