Gross calls for a 'Great Escape' from financial repression

PIMCO's Bill Gross has urged investors to stage a Steve McQueen-style 'Great Escape' from today's 'repressed' environment for returns.

Gross, who manages the world's largest bond fund, the $250bn PIMCO Total Return fund, said the credit expansion seen in the developed world has led to narrow credit and equity risk premiums, and negative real interest rates. These combine to form a state of financial repression which will exist for many years to come, he added. The manager advised investors to look for an 'escape route' from this scenario to achieve returns.  He said: "Your living conditions are OK for now - the food and in this case the returns are good - but they are not enough to get you what you need to cover lia...