Bill Gross warns of investor fatigue

Central bankers must figure out a way to generate better economic growth by next year or markets will “go south” as investors lose faith, according to Bill Gross, manager of the $1.3 billion Janus Global Unconstrained Bond Fund.

“Capital gains and the expectations for future gains will become giant pandas - very rare and sort of inefficient at reproduction,” Mr Gross wrote in his outlook for Janus Capital Group.

“Developed and emerging economies are flying at stall speed and they’ve got to bump up nominal GDP growth rates or else.”