Bill Gross Says U.S. Economy Approaching Recession (BOND)

Bill Gross, who runs the largest bond fund in the world, said today on Twitter that the U.S. economy is approaching recession when measured by employment, retail sales, investment, and corporate profits.

Last week Gross forecasted real growth in the U.S. will be about 1.5 percent for the next then years. Slow labor-force expansion, overextended credit, and the potential for geopolitical or environmental shocks will limit growth as the economy struggles to duplicate past productivity gains, he said in July 11th telephone interview with Bloomberg.

For now, Gross thinks U.S. treasuries are the safest bet and his fund's holdings remained steady at 35 percent this past June.

Yields on U.S. 5-year U.S. bonds posted historic lows today. Yields on the 10-year and 30-year bonds are also near record lows.

PIMCO Total Return ETF (NYSE: BOND) tacked on another 0.22 percent today. The ETF has gain 1.4 percent in the past month.

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