Investors should position for eventual inflation as the“end stage of a supernova credit explosion” is likely to produce more inflation than growth by holding Treasury Inflation Protected Securities, Gross wrote. “Get used to slower real growth; QE and zero-based interest rates have negative consequences.
“Transition from financial to real assets if possible at the margin,” Gross wrote in the note today. “Buy something you can sink your teeth into - gold, other commodities, anything that can’t be reproduced as fast as credit.”
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