Gross: Negative rates must reflate global economy or markets will go south

Real growth needed

Janus Capital's Bill Gross has warned investors that central bank policies including quantitative easing and negative or artificially low interest rates are running out of time to reflate global economies.

Gross (pictured), who joined Janus in 2014 from PIMCO, said all financial assets are priced upon short-term interest rates, which means if a bond with a negative yield loses investors money, then a stock investor will earn less than historically assumed or may even lose money themselves. To describe those who invest in bonds with negative yields, Gross used Zeno's Paradox, an ancient Greek theory which proposes if a walker heading towards a finish line ten yards away halved the length of his step with every step he took, he would mathematically never be able to reach his destination. ...