Post #358 by Baybrooke on the Brookfield Corporation board

Stocks A to Z / Stocks B / Brookfield Corporation (BN)

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Total return is dead. Don't let them sell you a bond fund. Says former PIMCO bond king Bill Gross in his latest investment outlook.

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The U.S. economy requires fiscal deficits and net increases in Treasury debt of 1-2 trillion or more annually in order for the economy to grow.

That’s a lot of bonds. That’s a good reason why 10-year Treasuries are at 4.60% instead of .5% in 2020. That’s a good reason why the Fed holds FF at 5.25%+ instead of 0: They have to price money to satisfy the “vigilantes” now that QE is history and QT is underway. Look for 5% plus 10-year yields over the next 12 months — not 4.0%. Those that argue for lower rates have to counter the inexorable upward climb in Treasury supply and the likely Sisyphean decline in bond prices. Total Return is dead. Don’t let them sell you a bond fund.

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Link below. It's a good read, only 2 pages. This is headwind Brookfield will have to contend with in the coming years.

https://williamhgross.com/wp-content/uploads/2024/...

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