Bill Gross, formerly of Pimco now of Janus, latest monthly letter is out, and he effectively writes that 2015 is going to be a poor year for asset classes and that the investment world will realise that the growth levels don’t justify current valuations should interest rates increase. It’s an interesting read, see below for snippets and a link to the full article.

• Beware the Ides of March, or the Ides of any month in 2015 for that matter. When the year is done, there will be minus signs in front of returns for many asset classes. The good times are over.
• There comes a time, however, when zero-based, and in some cases negative yields, fail to generate sufficient economic growth. While such yields almost automatically result in higher bond prices and escalating P/E ratios, their effect on real growth diminishes or in some cases, reverses. Corporate leaders, sensing structural changes in consumer demand, become willing borrowers, but primarily to reduce their own outstanding shares as opposed to investing in the real economy.
• What to consider in such a strange new world? High-quality assets with stable cash flows.

Source: Janus