End of the bull market? Get ready for the impending zombie investor apocalypse

'Zombie oil' is a term that has emerged to describe oil companies that continue to produce oil though the demand for it does not exist.

I\’ve long been baffled by our culture\’s fascination with zombie movies, zombie television shows, zombie YouTube videos, take your pick. What does it say about us that we\’re consumed by watching actors in bad makeup feast on phoney brains, or obtain own skulls opened by baseball bats, axes, chainsaws and so forth?

Bill Gross says the bull market \’supercycle\’ is finally coming to an end


Bill Gross said the bull market \”supercycle\” for stocks and bonds is approaching its end, because the unconventional monetary policies which have kept it alive since the financial crisis are set to end

A 10-cent psychologist might say it is all about our anxiety about death, or possibly our ever-older population\’s fear of dying – the nagging notion that our lives are inevitably descending into a series of dull monotonies, with severely limited mobility as well.

You can now add some latest missive from Bill Gross into the annals of zombiedom together with The Walking Dead, Night from the Living Dead and untold other lesser entries. In an investment outlook published on Monday the former head of Pimco and current bond portfolio manager at Janus Capital Group Inc. offers a stark message: the end of the 35-year bull marketplace is nigh.

In other words, investors would be the new walking dead; they just don\’t know it yet.

Because of \”stunted growth, zero based interest rates, and our difficulty in escaping an ongoing debt crisis,\” he writes, the \”’sense of ending\’ could not be much clearer for asset markets.\”

Granted, Gross has not been one to avoid inflammatory statements. Back in 2007, he characterized Bear Stearns, which had been burned by AAA-rated collateralized debt obligation (CDOs) and so on, as being wooed by \”Mr. Moody\’s and Mr. Poor\’s, by the makeup, those six-inch hooker heels, and a \’tramp stamp.\’\”

Even by Gross\’s standards, though, this week\’s investment outlook is, well, weird.

And with regards to the credibility of his position, he doesn\’t do himself any favours by beginning with a long contemplation by himself impending death and dying (Gross turned 71 recently), and then correlating his memento mori to a coming doom for investors.

For that, Gross was flamed up and down the Twittersphere by folks who saw his predictions as an ultimate illustration of egotism. There\’s certainly an element of the self-serving in Gross\’s forecasts: his outlook for any world where investors eke out income as capital gains stall is hardly surprising from a guy who runs a bond fund.

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