Interesting.  So the King of Bonds is buying equities......   Pimco's Bill Gross: The ‘new normal' may be to avoid most bonds Instead, the bond guru suggests that investors look to dividend-paying stocksIn the "new normal" of slower economic growth and lower investment returns, Pacific Investment Management Co. LLC's Bill Gross is himself buying steady, dividend-paying stocks.

"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.