Bill Gross’ latest outlook is a wild letter that includes a poem about Africa, the economic prospects under Trump, and his outlook for US Treasurys

“Are we just passing through without a trace following our dusty deaths?” writes the investor. “Will anyone, or anything, at the end of the line be the better for our time on earth? I, myself, know nothing of a grand scheme of existence, but I wish there to be one – if only to give meaning to our precious moments of happiness and frequent hours of despair.”

Moving from there, Gross goes into his outlook on President-elect Trump’s impact on the US economy. Gross is skeptical of Trump’s ability to truly impact the economy given deteriorating demographics and the increase of central bank-fueled debt.

“The 1% difference between 2 and 3 is therefore critical. We shall see whether Republican/Trumpian orthodoxy can stimulate an economy that in some ways is at full capacity already,” wrote Gross.

Gross has previously expressed his skepticism about Trump’s impact on the economy, saying after the election the Americans took a “wrong turn.”

Finally, Gross offered his outlook on the US 10-year Treasury yield, saying that he is skeptical of its recent rise since the election of Trump, but that bonds could actually break into a bear market if it breaks a key support level.

As noted by Gross, bonds have been in a 30-year bear market with the 10-year yield dropping to a low of 1.36% in July 2016. However, if the downward trend breaks a key level, according to Gross, it could mean that the multi-decade market has shifted. From the letter (emphasis added):

“Now, however this super strong, frequently tested downward trend line is at risk of being broken. 2.55% to 2.60% is the current “top” of this trend line, and over the past few weeks it has held and reversed lower by 15 basis points or so. BUT———-. And this is my only forecast for the 10-year in 2017. If 2.60% is broken on the upside – if yields move higher than 2.60% – a secular bear bond market has begun. Watch the 2.6% level. Much more important than Dow 20,000. Much more important than $60-a-barrel oil. Much more important that the Dollar/Euro parity at 1.00. It is the key to interest rate levels and perhaps stock price levels in 2017.”

So there it is: Bill Gross’ musings on the meaning of Africa as it relates to life itself, Trump’s impact on the US economy, and a key technical level for the US Treasury 10-year yield.

Check out the full letter and poem here»