What are Bill Gross's concerns about the stock market in 2026?

Bill Gross is concerned about high valuations and political unrest potentially stalling the stock market's rally in 2026.

What could support the stock market rally, according to Bill Gross?

Gross suggests that lower interest rates and evidence of AI increasing productivity could support the stock market.

Why is Bill Gross comparing the stock market to needing a cane?

He uses the 'cane' analogy to illustrate that the market's current momentum is shaky and requires support to avoid stalling.

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Gross: Stock Market 'Needs a Cane' for Momentum

23 Jan

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Summary

Bill Gross fears the stock market rally is faltering.
He notes high valuations cast a shadow over markets in 2026.
Lower interest rates and AI productivity gains could help.

Gross: Stock Market 'Needs a Cane' for Momentum

Billionaire investor Bill Gross has expressed concerns that the stock market's current rally may be unsustainable without further support. He noted a recent "wobbling" trend, indicating the market might need external assistance to maintain its upward momentum. Gross specifically cited the AI boom that has driven Big Tech stocks to historic highs, contributing to a significant rise in the S&P 500 over the past three years.

Gross highlighted that while rosy earnings forecasts, supported by fiscal and monetary stimulus, are propping up stocks, he cautioned against potential market faltering due to "political unrest." He also pointed to high valuations as a significant concern, referencing the Buffett Indicator which shows stock prices rising faster than GDP. He predicts that "valuation casts a shadow over markets in 2026," suggesting a need for support rather than a crash.

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