Bill Gross of PIMCO is among market analysts who think the Federal Reserve may be overly optimistic about the economy. In a video interview, he discusses why he thinks interest rates will go down. The global capital markets experienced an overall decline in June, which Jeffrey Gundlach interprets as a sign of deflation. Advisor Perspectives offers an in-depth analysis of this shift in the markets. One bright spot in the current economy is the U.S. auto industry, which will record its strongest month in more than five years. We close this week with a look at the increase in new orders.

Bill Gross Believes Interest Rates Will Go Down- Bill Gross comments on Federal Reserve policy and growth projections, which he believes are overstated.  He believes the yield on the 10 year treasury note will decline to 2.2% over the next few weeks. http://us.asset.tv/video/bill-gross-10-year-treasury-yield-should-be-220

Gundlach’s One-Word Explanation For June’s Decline– According to Doubleline’s Jeffrey Gundlach, a single word explains the declines global capital markets experienced in June: deflation. Prices declined throughout the economy, including in equity and bond markets, consumer prices, commodities and wages. http://advisorperspectives.com/newsletters13/pdfs/Gundlachs_One-Word_Explanation_for_Junes_Decline.pdf

Auto, Factory Data Hint At Some Momentum In Economy– U.S. new motor vehicle sales in June were poised to record their strongest month in more than 5-1/2 years. Factories posted a second straight month of gains in new orders in May, indicating some pick-up in economic activity.
http://www.reuters.com/article/2013/07/02/us-usa-economy-idUSBRE95O0S520130702

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John R. Day, Bill Ennis and Stephanie Davidson

 

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