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wage Amer­i­can vot­ers,” Gross added.

“I write in amazed, al­most amused be­wil­der­ment at what Amer­i­can vot­ers have done to them­selves.”

Gross be­came the world’s most fa­mous bond fund man­ager at Al­lianz’s Pa­cific In­vest­ment Man­age­ment, he ran Pimco To­tal Re­turn and worked un­til 2014, when he joined Janus. He now over­sees the $1.7 bil­lion (R24 bil­lion) Janus Global Un­con­strained Bond Fund.

In his out­look, Gross said he did not vote for the Repub­li­can Trump or Demo­crat Hil­lary Clin­ton, and ad­mit­ted that Clin­ton prob­a­bly would not have done much bet­ter to re­dis­tribute wages to­wards the work­ing class.

He said it was “doubt­ful” that Trump’s plan to repa­tri­ate huge cor­po­rate prof­its to the US for in­fra­struc­ture spend­ing would suc­ceed, say­ing a sim­i­lar ef­fort in 2004 re­sulted in large stock buy­backs, div­i­dend pay­outs and cor­po­rate bonuses, but no no­tice­able uptick in in­vest­ment.

Gross said Trump’s poli­cies mark a “con­tin­u­a­tion of the sta­tus quo”, and gov­ern­ment could step in with a “help Amer­ica” jobs pro­gramme to bol­ster labour in ways that over­lever­aged, cost-con­scious cor­po­ra­tions might not.

Re­gard­less, Gross said “pop­ulism is on the march” and could last for decades un­less work­ers’ share of GDP re­verses its down­ward trend. Trump’s im­mi­gra­tion, tax and trade poli­cies might not pro­mote that out­come, he said.

“In­vestors must drive with cau­tion, un­der­stand­ing that higher deficits re­sult­ing from lower taxes raise in­ter­est rates and in­fla­tion, which in turn have the po­ten­tial to pro­duce lower earn­ings and price-earn­ings ra­tios,” Gross added.

Gross’ fund through Mon­day re­turned 4.5% this year, out­pac­ing 68% of its peers, ac­cord­ing to Morn­ingstar data. Janus last month an­nounced a plan to merge with Lon­don-based Henderson Group.

– Reuters

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