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Pastimes : The Justa and Lars Honors Bob Brinker Investment Club Thread
VTI 336.14+0.9%Dec 19 4:00 PM EST

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To: Wally Mastroly who wrote (1897)7/23/2002 8:07:57 AM
From: Boca_PETE  Read Replies (1) of 10065
 
Wally M: RE: ("PIMCO's Bill Gross interview on CNBC")

PIMCO's Bill Gross sees go-forward market dividend yields rising to the 3-4% range and total returns in the neighborhood of 6-8%. To achieve this, there would need to be some combination of higher dividends and lower stock prices. Thus, he thinks the market averages could fall up to another 25%.

Gross warned that many high profile companies have used over-optimistic estimated investment returns (some in the 10-12% area) in computing their pension expense. These companies will ultimately be taking heavy charge hits against their future earnings when these pie-in-the-sky estimated pension investment returns come in at 6-8%.

The interview occurred on CNBC's After Hours program last night with Maria Bartaroma. The other guest was John Bogle who praised Bill Gross for his candidness.

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