Investing to Wealth

Bill Gross is warning investors that as Federal Reserve buyback programs disappear, bonds are likely to correct.

While we're sure he remains a long-term bond bull (he sort of has to be, given his job), investors should give particular weight to his warning given his strong disincentive to be bearish.

Reuters: "It's obvious that the programs in the United States, the Federal Reserve buyback programs ... those purchases and that purchasing power will cease within the next three to four months," Gross told a Canadian business television channel.

"So, to the extent that that's gone, then perhaps the upward influence in terms of those longer-term Treasuries will be felt more strongly in the next several quarters."

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See Also:

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• Let's Get Bill Gross In A Debate With Jim Rogers (VIDEO)
• Bill Gross Now Betting On Deflation