Gross: Why US election will not boost growth

The manager of the world's largest bond fund has said a Red or Blue victory will not make any difference to the US economy as the effects of monetary policy have already reached their limits.

In his monthly investor newsletter, PIMCO's Bill Gross (pictured) said at first glance, the Bernanke model of QE and financial repression over the past three years had made a noticeable effect on investment instead of consumption. "The stock market has doubled in three-plus years, risk spreads are at historical lows, and housing prices are moving up - 10% higher in Southern California alone," he said. But he said the real economy itself seems no different, and is still in "New Normal gear". "Surely by now, if the Bernanke model was as advertised, we would be seeing a pickup in inve...