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New York Markets Open in:

Futures: /quotes/zigman/43106711/delayed S&P 500 -1.1% /quotes/zigman/48241424/delayed DOW -1.2% /quotes/zigman/43108768/delayed NASDAQ -1.3%

need to know
Glencore copper, zinc output falls on cutbacks
Crude price pushes below $27 a barrel
Shell cancels $14.4 billion bridge credit facility
Zurich posts bigger-than-expected loss
Akzo Nobel in talks to buy BASF coatings unit
Chinese group bids $1.2 bln for Opera Software
Walgreens may end partnership with Theranos
U.S. government runs $55 billion budget surplus

Twitter proves Wall Street critics were right
Twitter adds new timeline feature

Bass issues warning on China’s foreign cash reserves
What’s holding back the world economy?
China's FX reserves drop $99.47 bln


Hong Kong stocks fizzle as market reopens

North Korea reportedly executes top general

Yellen: Fed isn’t sure negative rates are legal
Yellen doesn’t expect to reverse Fed rate hike
Yellen gets into heated exchange at hearing
Bond market, Yellen face off on negative rates

Burger King to start selling hot dogs

Wendy's profit, revenue top estimates
McDonald’s breakfast boost may not last


BP CEO calls for cuts to carbon emissions
Supreme Court blocks Obama’s carbon cuts

Will falling oil prices bankrupt Saudis, Russians?
Cheap oil may make OPEC dominant again
As oil revenue drops, Gulf states ponder taxes
Will oil get so cheap, it won’t pay to extract it?

Christie, Fiorina drop out of presidential race

A break for zombie-fighting Amazon developers

Expedia doesn’t see Airbnb as a threat

Private-equity firms now buying back their own shares

Has college financial aid totally backfired?

Michael Moore: Imagine life without student debt
6 ways Obama would make college affordable

What Apple, Amazon and Starbucks have in common
Amazon up after new share buyback plan

Portland Trail Blazers guards Damian Lillard and C.J. McCollum live with ... mom
Meet the NBA stars who live with their mothers

Musician Lenny Kravitz owned the 19th-century Creole cottage in the French Quarter of New Orleans from 1994 to 2012. It's now back on the market at $1.16 million.

RE/Max N.O. Properties/Mansion Global
A bona fide celebrity abode — believe it or not
London house of the week has spiritual side
S.F. real estate looked like this in 2000, too
Location Scouts: Insider intel from top markets

REIT bonus targets at heart of Brixmor scandal

Why is everyone freaking out about ‘CoCos’?

If you’re bullish on oil, Chevron and Exxon are buys here
If you’re bullish on oil, these stocks are buys

Social Security in the crosshairs: replacement rates again
Stage is being set for cuts to Social Security

Is it wise to hold on to cash reserves?

/conga/frontpage.html 367664

Markets »

122.29MDow Volume:
Avg Vol: 131.80M
Unchanged
201
Decliners
3048
Advancers
3255
Price Chg %Chg 1 Day
Range: 1 Day
  • 1 Day
  • 5 Days
  • 1 Month
  • 3 Months
  • 6 Months
  • 1 Year
  • 2 Years
Dow
/quotes/zigman/627449/realtime 15,915 -100 0.62%
Nasdaq
/quotes/zigman/12633936/realtime 4,284 +15 0.35%
S&P 500
/quotes/zigman/3870025/realtime 1,852 0 0.02%
GlobalDow
/quotes/zigman/629063/realtime 2,062 -18 0.88%
Gold
/quotes/zigman/33772884/delayed 1,213 +19 1.57%
Oil
/quotes/zigman/2260836/delayed 26.72 -0.73 2.66%
FTSE 100
/quotes/zigman/3173262/delayed 5,540 -133 2.34%
DAX
/quotes/zigman/2380246/delayed 8,805 -212 2.35%
CAC 40
/quotes/zigman/3173214/delayed 3,944 -117 2.89%
FTSE MIB
/quotes/zigman/1482176/delayed 16,091 -623 3.73%
IBEX 35
/quotes/zigman/2759620/delayed 7,880 -264 3.24%
Stoxx 600
/quotes/zigman/2380150/delayed 306 -9 2.83%
Asia Dow
/quotes/zigman/6959860/realtime 2,441 -13 0.52%
Nikkei 225
/quotes/zigman/5986735/delayed 15,713 -372 2.31%
Hang Seng
/quotes/zigman/2622475/delayed 18,546 -742 3.85%
Shanghai
/quotes/zigman/1859015/delayed 2,763 -18 0.63%
Sensex
/quotes/zigman/1652085/delayed 23,248 -510 2.15%
Singapore
/quotes/zigman/1709939/delayed 2,552 -30 1.15%
Euro
/quotes/zigman/16008136/realtime/sampled 1.14 +0.01 0.55%
Yen
/quotes/zigman/16008150/realtime/sampled 111.02 -2.34 2.06%
Pound
/quotes/zigman/16008140/realtime/sampled 1.44 -0.01 0.67%
Australia$
/quotes/zigman/16008115/realtime/sampled 0.70 -0.01 1.32%
DXY Index
/quotes/zigman/1652083/delayed 95.61 -0.22 0.23%
WSJ $ Idx
/quotes/zigman/41508961/realtime 88.70 -0.19 0.21%
U.S. 10yr
/quotes/zigman/15866666/realtime 1.67 0.00 0.00%
German 10y
/quotes/zigman/15866409/realtime 0.17 -0.08 30.99%
Italy 10yr
/quotes/zigman/15866497/realtime 1.67 +0.03 1.67%
Spain 10yr
/quotes/zigman/15866444/realtime 1.72 +0.00 0.26%
U.K. 10yr
/quotes/zigman/15866328/realtime 1.32 -0.10 6.87%
Japan 10yr
/quotes/zigman/15866525/realtime 0.01 0.00 0.00%
Crude Oil
/quotes/zigman/2260836/delayed 27 -1 2.66%
Gold
/quotes/zigman/33772884/delayed 1,213 +19 1.57%
Corn
/quotes/zigman/25518691/delayed 360 0 0.00%
DJIA F
/quotes/zigman/48241424/delayed 15,676 -190 1.20%
S&P F
/quotes/zigman/43106711/delayed 1,826 -21 1.14%
Silver
/quotes/zigman/32655632/delayed 15 +0 0.90%

Quotes

Symbol Price Change % Change
FB /quotes/zigman/9962609/composite 101.00 1.46 1.47%
AAPL /quotes/zigman/68270/composite 94.27 -0.72 -0.76%
GOOG /quotes/zigman/59527964/composite 684.12 6.01 0.89%
BAC /quotes/zigman/190927/composite 11.98 -0.22 -1.80%
C /quotes/zigman/5065548/composite 37.41 -0.10 -0.27%
F /quotes/zigman/264304/composite 11.34 -0.01 -0.09%
T /quotes/zigman/398198/composite 36.43 -0.22 -0.60%
BP /quotes/zigman/247026/composite 28.04 -0.31 -1.09%
GE /quotes/zigman/227468/composite 28.30 0.02 0.07%
Visit the quote page and your most recently viewed stocks will automatically be displayed here.
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World News from MarketWatch

Rates »

5 yr CD
1.3%
2 yr CD
0.7%
1 yr CD
0.5%
MMA $10K+
0.2%
MMA $50K+
0.4%

National averages from Bankrate.com

You Don’t Need Another Credit Card, You Need A Better One.
Avg. APR Last Week 6 Months
Low Interest 11.96% 11.96% 11.62%
Business 13.12% 13.12% 12.85%
Student 13.42% 13.42% 13.14%
Balance Transfer 14.35% 14.35% 14.12%
Airline 15.17% 15.17% 15.10%
Cash Back 15.20% 15.26% 15.27%
Reward 15.25% 15.28% 15.14%
Instant Approval 18.02% 18.21% 18.00%
Bad Credit 22.56% 22.88% 22.73%
Source:CreditCards.com

SPONSORED SECTIONS

Trending Tickers
  • /quotes/zigman/118681/composite TSLA-3.09%
  • /quotes/zigman/20039/composite CSCO-0.62%
  • /quotes/zigman/112431/composite CLDX-7.59%
  • /quotes/zigman/162154/composite NOK-1.02%
  • /quotes/zigman/7619798/composite EXPE+1.85%
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Bill Gross: Stocks Are a ‘Dying’ Asset

You gotta hand it to Bill Gross. The legendary bond investor has a net worth estimated in the billions, an ocean-side office in Newport Beach, Calif., and a reported devotion to yoga. But despite those seemingly sunny, serene circumstances, Gross maintains one of the more glum outlooks among professional money managers. In his August investment outlook letter, the founder of Pimco projects the death of stocks—or, as he puts it, “the cult of equity is dying.” He sees inflation-adjusted returns of around zero for a diversified portfolio of stocks and bonds. What’s an investor to do?

Getty Images

For one, take Gross’s words with a grain of sea salt, experts say. “These are great headline grabbers, but his crystal ball on equities is no better than anyone else’s,” says Larry Glazer, managing partner at Mayflower Advisors, a wealth management firm in Boston. In 2002, Gross predicted that the Dow would fall from 8,500 to 5,000, instead of rising as it did to a peak of 14,000 in October of 2007. Gross has a better track record with bonds—his $263 billion Pimco Total Return Fund has outperformed its benchmark and its fund peers for much of the past 10 years—but his early withdrawal from Treasuries cost the fund dearly in 2011.

This time around, Gross challenges the common wisdom that stocks will outperform over decades. In his influential 1994 book, Stocks for the Long Run, University of Pennsylvania professor Jeremy Siegel reviewed decades of historical data and called stocks the best investment over periods of 20 years or more, with returns of 6.5 to 7 percent after inflation. But that performance is a “historical freak,” Gross says, the result of circumstances—like decades of falling labor costs—that we probably won’t see again. Gross say stocks won’t likely continue to deliver returns higher than the rate of economic growth, especially in today’s shaky climate. Siegel didn’t respond to a request for comment, but on CNBC he defended his analysis, saying stock investors could still expect returns that outpace GDP growth.

Gross’s bleak outlook follows a strong first half for Pimco, which garnered $21.7 billion in new assets from investors in the six months ending June 30, second only to Vanguard, which attracted $58.3 billion, according to Morningstar. The firm has made a big push into stocks in recent years, anticipating that the long bull market in bonds will wane after some thirty years of falling rates and rising prices.

Some financial advisers are siding with Gross. James Holtzman, an adviser with Legend Financial Advisors in Pittsburgh, has recently been telling clients to expect stock returns of four percent to five percent over the next 10 years, or a paltry one to two points over inflation. To bolster clients’ returns, he’s been increasing their allocations to alternative investments such as managed futures and gold.

Despite the uncertain outlook here and abroad, others are finding reasons for optimism. John Manley, chief equity strategist for Wells Fargo Advantage Funds, says he takes heart that America remains a hub for talented immigrants from all over the world, and that the country’s entrepreneurial spirit remains strong—two catalysts for economic growth that could propel the stock market to big future gains.

“If you don’t believe in stocks over the very long term,” Manley says, “you don’t believe in America.”

Comments

We welcome thoughtful comments from readers. Please comply with our guidelines. Our blogs do not require the use of your real name.

Comments (5 of 35)

View all Comments »
    • The knowledge is very fascinating.

    • Hey, I think your blog might be having browser compatibility issues. When I look at your blog in Chrome, it looks fine but when opening in Internet Explorer, it has some overlapping. I just wanted to give you a quick heads up! Other then that, wonderful blog! 3900 utah http://www.mikrapolki.com

    • Hey vangeIV I see you too find the Pragmatic Capitalism in your list of favorites…I scbsuribe to the comments in Google Reader. It is a very useful site even if I have trouble with the occasional posting here and there.BTW thanks for the link to that video clip…Sad isn’t it? It is sad. If I were on the committee of idiots in the Republican Party I would use the clip as an ad in the election.

    • He might be right this time but he’s done so many flip-flops lately it’s hard to take him seriously any more.

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MarketWatch - Stock Market Quotes, Business News, Financial News
Bulletin
Investor Alert

New York Markets Open in:

Futures: /quotes/zigman/43106711/delayed S&P 500 -1.1% /quotes/zigman/48241424/delayed DOW -1.2% /quotes/zigman/43108768/delayed NASDAQ -1.3%

need to know
Glencore copper, zinc output falls on cutbacks
Crude price pushes below $27 a barrel
Shell cancels $14.4 billion bridge credit facility
Zurich posts bigger-than-expected loss
Akzo Nobel in talks to buy BASF coatings unit
Chinese group bids $1.2 bln for Opera Software
Walgreens may end partnership with Theranos
U.S. government runs $55 billion budget surplus

Twitter proves Wall Street critics were right
Twitter adds new timeline feature

Bass issues warning on China’s foreign cash reserves
What’s holding back the world economy?
China's FX reserves drop $99.47 bln


Hong Kong stocks fizzle as market reopens

North Korea reportedly executes top general

Yellen: Fed isn’t sure negative rates are legal
Yellen doesn’t expect to reverse Fed rate hike
Yellen gets into heated exchange at hearing
Bond market, Yellen face off on negative rates

Burger King to start selling hot dogs

Wendy's profit, revenue top estimates
McDonald’s breakfast boost may not last


BP CEO calls for cuts to carbon emissions
Supreme Court blocks Obama’s carbon cuts

Will falling oil prices bankrupt Saudis, Russians?
Cheap oil may make OPEC dominant again
As oil revenue drops, Gulf states ponder taxes
Will oil get so cheap, it won’t pay to extract it?

Christie, Fiorina drop out of presidential race

A break for zombie-fighting Amazon developers

Expedia doesn’t see Airbnb as a threat

Private-equity firms now buying back their own shares

Has college financial aid totally backfired?

Michael Moore: Imagine life without student debt
6 ways Obama would make college affordable

What Apple, Amazon and Starbucks have in common
Amazon up after new share buyback plan

Portland Trail Blazers guards Damian Lillard and C.J. McCollum live with ... mom
Meet the NBA stars who live with their mothers

Musician Lenny Kravitz owned the 19th-century Creole cottage in the French Quarter of New Orleans from 1994 to 2012. It's now back on the market at $1.16 million.

RE/Max N.O. Properties/Mansion Global
A bona fide celebrity abode — believe it or not
London house of the week has spiritual side
S.F. real estate looked like this in 2000, too
Location Scouts: Insider intel from top markets

REIT bonus targets at heart of Brixmor scandal

Why is everyone freaking out about ‘CoCos’?

If you’re bullish on oil, Chevron and Exxon are buys here
If you’re bullish on oil, these stocks are buys

Social Security in the crosshairs: replacement rates again
Stage is being set for cuts to Social Security

Is it wise to hold on to cash reserves?

/conga/frontpage.html 367664

Markets »

122.29MDow Volume:
Avg Vol: 131.80M
Unchanged
201
Decliners
3048
Advancers
3255
Price Chg %Chg 1 Day
Range: 1 Day
  • 1 Day
  • 5 Days
  • 1 Month
  • 3 Months
  • 6 Months
  • 1 Year
  • 2 Years
Dow
/quotes/zigman/627449/realtime 15,915 -100 0.62%
Nasdaq
/quotes/zigman/12633936/realtime 4,284 +15 0.35%
S&P 500
/quotes/zigman/3870025/realtime 1,852 0 0.02%
GlobalDow
/quotes/zigman/629063/realtime 2,061 -19 0.90%
Gold
/quotes/zigman/33772884/delayed 1,213 +19 1.57%
Oil
/quotes/zigman/2260836/delayed 26.73 -0.72 2.62%
FTSE 100
/quotes/zigman/3173262/delayed 5,540 -132 2.33%
DAX
/quotes/zigman/2380246/delayed 8,809 -208 2.31%
CAC 40
/quotes/zigman/3173214/delayed 3,944 -117 2.89%
FTSE MIB
/quotes/zigman/1482176/delayed 16,092 -622 3.72%
IBEX 35
/quotes/zigman/2759620/delayed 7,880 -264 3.24%
Stoxx 600
/quotes/zigman/2380150/delayed 306 -9 2.83%
Asia Dow
/quotes/zigman/6959860/realtime 2,440 -14 0.56%
Nikkei 225
/quotes/zigman/5986735/delayed 15,713 -372 2.31%
Hang Seng
/quotes/zigman/2622475/delayed 18,546 -742 3.85%
Shanghai
/quotes/zigman/1859015/delayed 2,763 -18 0.63%
Sensex
/quotes/zigman/1652085/delayed 23,249 -510 2.15%
Singapore
/quotes/zigman/1709939/delayed 2,553 -29 1.11%
Euro
/quotes/zigman/16008136/realtime/sampled 1.14 +0.01 0.52%
Yen
/quotes/zigman/16008150/realtime/sampled 111.09 -2.26 2.00%
Pound
/quotes/zigman/16008140/realtime/sampled 1.44 -0.01 0.65%
Australia$
/quotes/zigman/16008115/realtime/sampled 0.70 -0.01 1.27%
DXY Index
/quotes/zigman/1652083/delayed 95.61 -0.22 0.23%
WSJ $ Idx
/quotes/zigman/41508961/realtime 88.70 -0.19 0.21%
U.S. 10yr
/quotes/zigman/15866666/realtime 1.67 0.00 0.00%
German 10y
/quotes/zigman/15866409/realtime 0.17 -0.08 31.28%
Italy 10yr
/quotes/zigman/15866497/realtime 1.67 +0.03 1.67%
Spain 10yr
/quotes/zigman/15866444/realtime 1.72 +0.00 0.26%
U.K. 10yr
/quotes/zigman/15866328/realtime 1.32 -0.10 6.87%
Japan 10yr
/quotes/zigman/15866525/realtime 0.01 0.00 0.00%
Crude Oil
/quotes/zigman/2260836/delayed 27 -1 2.62%
Gold
/quotes/zigman/33772884/delayed 1,213 +19 1.57%
Corn
/quotes/zigman/25518691/delayed 360 0 0.00%
DJIA F
/quotes/zigman/48241424/delayed 15,678 -188 1.18%
S&P F
/quotes/zigman/43106711/delayed 1,826 -21 1.14%
Silver
/quotes/zigman/32655632/delayed 15 +0 0.87%

Quotes

Symbol Price Change % Change
FB /quotes/zigman/9962609/composite 101.00 1.46 1.47%
AAPL /quotes/zigman/68270/composite 94.27 -0.72 -0.76%
GOOG /quotes/zigman/59527964/composite 684.12 6.01 0.89%
BAC /quotes/zigman/190927/composite 11.98 -0.22 -1.80%
C /quotes/zigman/5065548/composite 37.41 -0.10 -0.27%
F /quotes/zigman/264304/composite 11.34 -0.01 -0.09%
T /quotes/zigman/398198/composite 36.43 -0.22 -0.60%
BP /quotes/zigman/247026/composite 28.04 -0.31 -1.09%
GE /quotes/zigman/227468/composite 28.30 0.02 0.07%
Visit the quote page and your most recently viewed stocks will automatically be displayed here.
Please log in to view your watchlist
MarketWatch Portfolio

World News from MarketWatch

Rates »

5 yr CD
1.3%
2 yr CD
0.7%
1 yr CD
0.5%
MMA $10K+
0.2%
MMA $50K+
0.4%

National averages from Bankrate.com

You Don’t Need Another Credit Card, You Need A Better One.
Avg. APR Last Week 6 Months
Low Interest 11.96% 11.96% 11.62%
Business 13.12% 13.12% 12.85%
Student 13.42% 13.42% 13.14%
Balance Transfer 14.35% 14.35% 14.12%
Airline 15.17% 15.17% 15.10%
Cash Back 15.20% 15.26% 15.27%
Reward 15.25% 15.28% 15.14%
Instant Approval 18.02% 18.21% 18.00%
Bad Credit 22.56% 22.88% 22.73%
Source:CreditCards.com

SPONSORED SECTIONS

Trending Tickers
  • /quotes/zigman/118681/composite TSLA-3.09%
  • /quotes/zigman/20039/composite CSCO-0.62%
  • /quotes/zigman/112431/composite CLDX-7.59%
  • /quotes/zigman/162154/composite NOK-1.02%
  • /quotes/zigman/7619798/composite EXPE+1.85%
X
Powered by StockTwits
Link to MarketWatch's Slice.

As of July 2, 2013, the SmartMoney content you loved now lives on MarketWatch.

MarketWatch will continue to provide the same important news and information you rely on every day. And, as a MarketWatch user, you will be able to enjoy:

  • Personalized news and quote email alerts
  • Editorial e-newsletters about personal finance, mutual funds and market-specific coverage
  • Premium newsletters by our market experts
  • Games, such as Virtual Stock Exchange and Beat the Darts
  • Free WSJ.com registration