Bill Gross March Investment Outlook Worth to Read

Not many people are having interest in Bill Gross's writing style, but his March investment outlook is worth reading for everyone who is struggling with several money related issues.

The latest investment outlook given by Bill Gross starts with a wacky touch. Gross in his outlook has asked 'If you were a dog, what kind would you be?'

But going further the outlook goes on to elaborate the topic that has become a theme for the former Pimco chief. He explains how actually ultra loose monetary policies by the world's largest central banks threaten traditional business models.

He further wrote that the phenomenon of negative yields throughout several European yield curves is particularly astonishing.

Gross wrote, "It was as inconceivable as the 'Big Bang' with its black holes that followed billions of years later; the rules of physics or in this case the rules of money didn't apply; it was impossible to imagine".

He also said that the universe of negative-yielding notes and bonds in Euroland now make a total of almost $2 trillion. Not even a thin gruel is being offered to modern investors, he said.

However, his biggest worry is that low interest rates will destroy business models crucial to modern-day economies.

Pension funds and insurance companies are perhaps the most important examples of financial sectors that are threatened by low to negative interest rates, he said.

Both the sectors have always attempted to immunize their long term liabilities by investing at a similar duration with an attractive yield.

Gross is hardly the only one pondering the phenomenon of negative yields. Economist Nouriel Roubini, in a column published Monday, warned that for negative rates to jump-start the economy, they need to be accompanied by some fiscal stimulus.