Renowned bond investor Bill Gross is warning investors against making quick moves in the market amidst the current turmoil sparked by President Trump’s tariff push. The global market selloff, which saw the S&P 500 drop 5%, the Nasdaq tumble 6%, and the Dow Jones Industrial Average sink 4%, has raised concerns about a potential recession.
Gross cautioned investors against “shopping for bargains” during the dip, advising them to stay calm as the current trade policies will have long-term implications. He noted that timing the market’s bottom is not possible with tariffs being a persistent aspect of US economic policy.
The investor recommended focusing on domestic stocks in stable sectors like telephone companies and tobacco companies, despite their recent price increases. However, even these sectors are showing signs of overbuying.
Gross also emphasized the importance of having cash reserves, as seen by Berkshire Hathaway’s Warren Buffett, who has been selling off equities and amassing a $334 billion cash pile. Several fund managers have followed suit, citing recession risks and stagflation concerns.
While there is hope that Trump will reassess his trade policies in the coming weeks or months, Gross doubts this will happen soon. Therefore, investors are advised to prioritize having cash on hand as the situation unfolds.
Source: https://fortune.com/2025/04/04/bill-gross-bonds-warns-investors-stock-market-verizon-altria-cash