Bill Gross, the old "debt king", recently said in an interview that getting Trump re-elected as president would make the bond market even more "negative"handrankingschoice.
"Trump is the more bearish of the candidates because his plan advocates continued tax cuts and price increases," which would add to the already rapidly growing U.S. deficit, Gross said.
He said the current government's spending also far exceeds its revenue from taxes, but for the bond market,"a Trump election would be even more disruptive."
As the federal deficit continued to widen, the U.S. Treasury issued a large amount of bonds. The Congressional Budget Office predicts that the fiscal 2024 deficit will reach 1.5 percenthandrankings.6 trillion US dollars.
Gross said: "The deficit is the culprithandrankings;$2 trillion in annual supply growth... will put some pressure on the market."
He is also pessimistic about the stock market, saying investors "need to lower their expectations" and not expect the S & P 500 to maintain a return of 24% like last year.
