Gross: Central banks are casinos gambling with QE

Advises investors to de-risk portfolios

Janus Capital's Bill Gross has compared central banks to casinos, saying they destroy the business models of insurance companies and pension funds by creating artificially low interest rates through quantitative easing.

The manager (pictured) of the $1.4bn Janus Global Unconstrained Bond fund advised investors to de-risk portfolios in the run up to 2016, saying the risks of a market downturn are escalating as central banks continue with easing measures. "Much like time is relative to the speed of light, the faster and faster central bankers press the monetary button, the greater and greater the relative risk of owning financial assets," he said. He criticised policymakers for destroying the investment industry by continuously pumping the financial system with liquidity, saying their actions will even...