Other factors depressing growth include “de-globalization,” as exemplified by the June 23 Brexit vote for Britain to leave the European Union, slowing immigration and trade, aging populations, too much debt and job-threatening “robotization,” according to Gross.
The U.S. economy is expected to expand 1.9 percent this year, down from 2.4 percent in 2015 and 2014, according to forecasts compiled by Bloomberg. Global growth is expected to slow to 3 percent from 3.1 percent last year and 3.4 percent in 2014.
The Janus Global Unconstrained Bond Fund, which Gross runs, returned 3.3 percent this year through July 1, outperforming 73 percent of its Bloomberg peers. Fund investors have gained 2.3 percent since October 2014, when Gross took over after his acrimonious exit from Pacific Investment Management Co.
“Worry for now about the return ‘of’ your money, not the return ‘on’ it,” Gross wrote in his outlook. “Our Monopoly-based economy requires credit creation and if it stays low, the future losers will grow in number.”