Bill Gross Expects More Rate Cuts to Offset Credit Woes
In his November "Investment Outlook," PIMCO's Bill Gross forecasts a 3.50% Fed Funds rate (from the curent rate of 4.50%) to stabilize a noticeable slowdown in credit growth. He believes that a slower economy combined with bankers' reluctance to lend will increase the need for government assistance in the form of lower interest rates. Click here for the full report.
Through October 31, 2007, Gross' PIMCO Total Return Bond Fund has outperformed 98% of other mutual funds in the intermediate-term bond fund category, according to Morningstar. The fund continues to measure up to investors' high expectations.