Is the bull market in US stocks coming to an end? "Bond King": The downward trend is weakening under multiple headwinds

According to the financial news app Zhitong Finance, despite this year's record-breaking rally in the US stock market continuing to impress Wall Street, "Bond King" Bill Gross is not certain whether this momentum can be sustained for a longer period. It is worth mentioning that Gross did not predict an imminent collapse of the stock market bull run, but rather mentioned that some unfavorable factors are on the horizon, including overvaluation and various macroeconomic and geopolitical headwinds.

In his latest report, Gross stated that as momentum weakens, investors should reallocate towards defensive and high-yield stocks. He also advised investors to reduce exposure to fixed income assets, previously criticizing the current state of US Treasuries. Gross said, "It's not a bear market, but it's no longer a bull market either." He added that the stock market will see "positive returns for 'buy low' in the future."

Gross also listed his current top four investments: the first being the electric services company Allete (ALE.US), which has risen nearly 9% year-to-date. Gross believes this stock has another 10% upside potential in the next 12 months. Gross also mentioned Master Limited Partnerships (MLPs) linked to oil and gas contracts, which he often emphasizes as a productive alternative to bonds. When discussing alternatives to government bonds, Gross mentioned high-yield mortgage real estate investment trusts like Annaly Capital Management. He also considered municipal income funds like DWS Municipal Income Trust as a worthwhile investment.

Gross specifically noted that if Democratic candidate Harris wins the election on November 5th and her party gains a majority in Congress, the corporate tax burden may increase. Furthermore, Gross also stated that escalating global military tensions will hinder economic growth; the rising deficit – an issue Gross has repeatedly warned to be cautious of – will eventually slow down spending.

Gross also mentioned that legendary investor Warren Buffett is currently hoarding record amounts of cash. Some believe this is a sign that a significant sell-off in the stock market may occur soon. For Gross, he believes this at least foreshadows a "rocky road ahead" for the stock market.

However, Gross also listed some positive factors that may offset the aforementioned unfavorable factors, such as declining US inflation and continued investment in artificial intelligence