SCHR - Bill Gross says bonds are trash now joining cash

Bond guru Bill Gross dismisses intermediate- and long-term bond funds as interest rates "have nowhere to go but up." In his investment outlook letter, Gross predicts 10-year Treasury yields (NYSEARCA:TBT) (NASDAQ:TLT) to hit 2% over the next 12 months. "Through the benefit of my aging mathematical gymnastics, that equates to a 4%-5% price loss and a negative total return of 2.5%-3%," Gross writes. "Cash has been trash for a long time but there are now new contenders for the investment garbage can. Intermediate to long-term bond funds are in that trash receptacle for sure, but will stocks follow?" "Earnings growth had better be double-digit-plus or else they could join the garbage truck," he adds. "And then there’s the now recent Afghanistan fallout, and the incessant push of global warming that few investors seem to care about unless there’s a new solar IPO to run up on the first day. There

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Bill Gross says bonds are trash now, joining cash