CNBC recently spoke with legendary bond investor Bill Gross who warns listeners of a pending ‘supernova’ in the bond markets.
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Mr. Gross explained his analogy by saying “A supernova can either explode or contract, implode, and that is reflective of deflation, the implosion, or inflation the explosion… The markets for the last five or six years since Lehman haven’t really known or had certainty which way its was gonna go. But certainly with zero percent interest rates and in many cases negative interest rates, it’s the last stages in terms of where rates can go and the repressions we will know in several years… Either way implosion or explosion its not a favorable environment.”
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