Bill Gross's latest investment letter is an obituary for the stock market, writes Reuters.

The Pimco [profile] chief writes that the robust returns that investors have grown used to will be all but impossible to achieve.

Gross takes on the notion that investors should expect a real return of 6.6 percent, a figure known as the Siegel constant, which he calls "an historical freak, a mutation likely never to be seen again as far as we mortals are concerned."

Nor is the Bond King particularly bullish on bonds. He writes that investors should expect "mere survival" in the bond market, and argues that "with long Treasuries currently yielding 2.55 percent, it is even more of a stretch to assume that long-term bonds -- and the bond market -- will replicate the performance of decades past."

The Reuters reporter has a little fun with Gross's doom-and-gloom prophesies, saying that they recall the famous BusinessWeek "Death of Equities" cover story from 1979.  

Edited by: HFD


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