The fixed-income guru has recently weighed in with stock recommendations. Should you take his advice? Chances are, you already have.
Bill Gross saved the best for last during his keynote address at this year's Morningstar Investment Conference.
Early in his talk, the PIMCO chief pointed out that, as the tailwind provided by the Fed's aggressively accommodative monetary stance subsides, stocks will be left to suffer the slings and arrows of rising real interest rates, as well as the higher inflation that Gross (among many others) thinks the Fed may be engineering to help the U.S. inflate its way out of debt.
Yet, on their own or not, some companies--and the funds that invest in them--wouldn't merely survive that double whammy; they and their investors could thrive. Near the end of his talk, Gross--who manages nearly $250 billion in fixed-income assets at PIMCO Total Return
Cold Stock Tips
Gross also aired his views in an interview with CNBC at the conference, mentioning Procter & Gamble
"There's a huge gap and a huge differential," Gross said, "if an investor is willing to take a minor downgrade in terms of credit."
That's sound advice, but chances are you already have stakes in those companies through the mutual funds you own. Large-cap stalwarts all, they reside in the top fourth of the S&P 500's components. They're well represented in the portfolios of several widely held, topnotch mutual funds, too.
To say that Gross' recommendations are already widely held would be a similarly massive understatement.