Tags: Trump Administration | Donald Trump | GOP2016 | bill gross | donald trump | bonds | dollar

Bill Gross: Trump Presidency Would Be 'Negative' for Bonds, Dollar

(Getty/Mark Wilson)

By    |   Thursday, 03 Nov 2016 02:18 PM

 

 

Bill Gross, portfolio manager of the Janus Global Unconstrained Bond Fund, warns that a Donald Trump presidency just wouldn’t be good for the dollar or bonds.

"I do think that if Trump wins, it's a dollar negative for developed countries,” he told CNBC. “It's equity negative because of the potential volatility. It's bond market negative because of the spending and the tax reductions, in terms of potential and higher inflation," he said.

 

"He's a bigger spender than Clinton, at least in terms of his tax cuts and potential policies. He's attacked the Fed over the past few months and that's not necessarily a positive in terms of independence for the Fed and the potential for inflation going forward," Gross said.

As for Trump's opponent, Gross said a Hillary Clinton presidency would be positive for the dollar, but neutral for both bonds and equities, CNBC explained.  

Gross isn't the only respected economic voice to warn about a Trump presidency.

The Financial Times had endorsed Hillary Clinton for president, proclaiming that the Democratic nominee “is manifestly more competent than (Donald) Trump with his braggadocio, divisiveness and meanness.”

“Despite her faults, Mrs. Clinton is eminently qualified to be the first woman elected to the White House,” the newspaper stated.

“Rarely in a U.S. presidential election has the choice been so stark and the stakes so high.”

The newspaper warned that “international order of the past 70 years is fraying, maybe even breaking down,” citing the recent Brexit vote, continued unrest in the Middle East and other global hotspots such as Syria. Russia has also emerged once again as an international worry.

Meanwhile, one of the most respected investment gurus of our generation has said a Trump presidency wouldn’t be the blow to U.S. business that some fear, Bloomberg reported.

 

“If either Donald Trump or Hillary Clinton becomes president, I think Berkshire will continue to do fine,” said Warren Buffett, chairman and chief executive officer of Berkshire Hathaway Inc. 

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Bill Gross, portfolio manager of the Janus Global Unconstrained Bond Fund, warns that a Donald Trump presidency just wouldn't be good for the dollar or bonds.
bill gross, donald trump, bonds, dollar
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2016-18-03
Thursday, 03 Nov 2016 02:18 PM
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