Gross: Developed world will not escape ‘straight jacket of debt' for years

PIMCO's Bill Gross, manager of the world's largest bond fund, has warned developed economies are set for sluggish growth and artificially low interest rates for a number of years, as they struggle to reduce their sky-high debt levels.

In his latest investment outlook, Gross paints a bleak outlook for developed nations, arguing investors will be lucky to get a 5% return on their investments in the region - in both equity and bond markets. Gross warns global growth will remain lackluster and interest rates artificially low. "Investors need to realise the eurozone's problems are global and secular in nature, which are reflecting worldwide deleveraging and growth dynamics which began in 2008," said Gross. "It will be years before Europe, the United States, Japan and developed nations in total can constructively esca...