Gross’ top investment picks for the future

1. Debt/Delevering

‘Developed global economies have too much debt – pure and simple – and as we attempt to resolve the dilemma, the resultant austerity should lower real growth for years to come.’

‘In addition to sovereign debt levels which were the primary focus of the Reinhart/Rogoff studies, it is clear that financial institutions and households face similar growth headwinds.'

'The former needs to raise equity via retained earnings and the latter to increase savings in order to stabilize family balance sheets.’

2. Globalization

‘Globalization has been an historical growth stimulant, but if it slows, then the caffeine may wear off.’

‘Is it any wonder that markets now move up or down as much on the basis of policy changes coming out of China as opposed to the US or Euroland?’

‘If China and the accompanying benefits of globalization slow, so too may developed economy growth rates.’

3. Technology

Technology has been a boon to productivity and therefore real economic growth, says Gross, but it has its shady side.

'Recently, Erik Brynjolfsson and Andrew McAfee at MIT have affirmed that workers are losing the race against the machine.'

'Accountants, machinists, medical technicians, even software writers that write the software for “machines” are being displaced without upscaled replacement jobs.'