Donald Trump’s reelection would be the more “bearish” option for bond markets, bond investor Bill Gross told The Financial Times, and his second presidency would push deficits higher. Gross’s opinion goes against one of Trump’s key campaign points, which is that he is a better option for the U.S. economy and financial markets.
“Trump is the more bearish of the candidates simply because his programs advocate continued tax cuts and more expensive things,” Gross explained. He added that Biden’s administration has spent more money than it’s accrued from taxes, but Trump’s second presidency would be far more disruptive.
Gross has been turned to by his famed bond strategy because of the growing U.S. deficit, and he recently declared that “total return is dead.” Instead, the investor said he puts his fixed-income allocation into a closed-end fund that invests in preferred securities, contingent capital and up to 20% private credit.
