Billionaire turnaround investor Wilbur Ross says U.S. investors would be best served to ‘buy stocks or a Picasso painting’ and steer clear of bonds because ‘there is just no yield to be had.’ Ross said one sector he’s looking at right now are small exploration and production companies and in particular, their debt instruments. Ross said, ‘we’ve been collecting a bread basket of them and so our theory is if you hold them to maturity you get a rate of return in the low teens. If in two or three years , oil goes up $10 or $20 so that would be a good rate of return. If oil stays low for several years, they’ll go bankrupt and we’ll end up owning the companies.’ As for Greece, Ross said the bigger issue is the impact on the EU where he believes there is a lot of geopolitical stress. ‘If Greece goes out, it could have a big domino effect. It could influence the UK elections, the polish elections that are coming up.’ TheStreet’s Rhonda Schaffler reports from Los Angeles at the Milken Global Conference.
Wilbur Ross Is Actually A Fan Of Abenomoics
By Sheeraz Raza
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