Bill Gross agrees with his colleague Scott Simon that U.S. real estate may soon be bottoming, but apparently he’s more bullish on the prospects for a recovery in prices.
While Mr. Simon recently said that “If one labels recovery as prices rising dramatically, we do not foresee that anytime soon,” Bill Gross seems more optimistic that it could happen:
Both commercial and residential real estate are reaching a bottoming point and possibly even prepared to turn higher, said Gross, CIO of Pacific Investment Management Co., or PIMCO, the world’s largest bond fund.
With stocks likely to return 5 to 6 per cent and bonds 3 to 4 per cent, he said, investors would be wise to start looking at real estate opportunities.
“Ultimately the riskier assets will be the less the risky assets,” he said. “I wouldn’t suggest moving into those particular sectors at the moment but ultimately risk and reward go together.”
So start sniffing around, even if the exact bottom is hard to call.
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