Bill Gross offered some advice to investors as Treasuries and equities slumped Thursday after some worrisome U.S. economic data: “Stick to value stocks, avoid tech for now.”
If investors must dabble in technology companies they should buy Microsoft Corp., the erstwhile bond king wrote in a post on social-media platform X, in which he also quoted Don McLean’s 1971 hit song “American Pie.”
The suggestions come as tech companies in the S&P 500 Index are on pace for their worst month since September, sliding more than 6.5% in April to drag major benchmarks lower.
In contrast, the Vanguard Value ETF — which includes Berkshire Hathaway Inc. and General Motors Co. — has slipped roughly 3.5% over the same stretch.
In the post, which started “The day the music died,” Gross called out that the yield on benchmark 10-year Treasuries was “moving to 4.75%,” not far above Thursday’s peak of about 4.74%, the highest level this year.
“Why own bonds?” the post reads, noting that Treasury bills yield 5.25%.
Gross is the co-founder and former chief investment officer of Pacific Investment Management Co.
