Bill Gross on a Trump win – higher government spending, higher deficits, higher rates

Bill Gross founded fixed income giant PIMCO and was once referred to as the “Bond King”.

In a front-page Financial Times interview piece (gated) Gross argues that Trump is the bearish choice for bond markets:

• predicted that a second Trump presidency would push
  deficits higher than re-electing President Joe Biden
• “Trump is the more bearish of the candidates simply because
  his programs advocate continued tax cuts and more expensive
  things,”
• Said that while Biden’s administration has
  spent more than it has taken in taxes, that “Trump’s election would be more disruptive”

With the US election approaching it’s a bull market in triggers. I bet this will be one.

This article was written by Eamonn Sheridan at www.forexlive.com.