REUTERS/Jason Reed
- Bill Gross says stocks and long-dated bonds are overpriced and the US economy will slump.
- Stocks are too pricey relative to risk-free assets and company earnings, the "Bond King" says.
- The Pimco cofounder expects the delayed impact of interest-rate hikes to temper consumer spending.
Brace for stocks and long-dated bonds to slump and the US economy to falter, Bill Gross has warned.
"I simply think that based on the low equity risk premium and relatively high PE ratios, the market's overvalued," the billionaire investor known as the "Bond King" told Bloomberg on Friday.