Legendary investor Bill Gross advised investors not to try to “catch a falling knife” amid the worst stock-market drop since the pandemic. He likened today’s market conditions to 1971, when the gold standard ended with negative consequences.
Gross recommended investing in domestic companies like AT&T, Verizon Communications, and Altria due to their relatively safe dividends. However, he cautioned that these stocks are approaching “overbought” territory. Despite this, they advanced on Thursday alongside a broader Dow Jones Industrial Average decline of 1,679 points.
The RSI readings for the mentioned stocks indicate that they are overbought, while the S&P 500’s reading is considered oversold. Gross rose to prominence as the co-founder of Pacific Investment Management and made his fortune by trading bonds aggressively.
Source: https://finance.yahoo.com/news/don-t-buy-dip-legendary-100700130.html