NEW YORK (Reuters) - The bull market "supercycle" for stocks and bonds is approaching an end, as the unconventional monetary policies that have bolstered asset prices since the financial crisis are running out, widely followed investor Bill Gross said on Monday.
The attempt by global central banks to cure a debt crisis with more debt doesn't have much further to run, which will end a rally that's lasted three and a half decades, the 71-year-old manager wrote in an investment outlook for Janus Capital Group Inc..
Gross, manager of the $1.5 billion Janus Global Unconstrained Bond Fund, has made such warnings before and acknowledged they've come too early.
In May 2013, Gross, then the manager of the world's largest bond fund, the Pimco Total Return Fund, jolted Wall Street participants on social media with this Twitter (NYSE:TWTR) post: "The secular 30-yr bull market in bonds likely ended 4/29/2013."
On Monday, Gross said investors should stop focusing on price appreciation and, instead, look to "mildly levered income," such as his recommendation to short German government debt.
"Credit-based oxygen is running out," Gross wrote in the outlook, titled "A Sense of an Ending," in which he compared the final stages of the market cycle with his own mortality.
"I merely have a sense of an ending, a secular bull market ending with a whimper, not a bang."