3xshimanoultegra14000xtd| Bill Gross: Stick to value stocks and avoid technology stocks due to soaring U.S. yields

Thursday3xshimanoultegra14000xtdAfter some worrying U. S. economic data, Treasuries and stocks plummeted, and Bill Gross offered some advice to investors: "stick to value stocks and avoid technology stocks for a while."

The former bond king wrote on social media platform X that if investors have to dabble in technology companies, they should buy shares in Microsoft Corp. He also cited Don McLean's 1971 hit "American Pie."

The recommendations come as technology stocks in the S & P 500 Index are experiencing their worst month since September, falling more than 6 per cent in April3xshimanoultegra14000xtd.5%, dragging down the main stock index. By contrast, Vanguard Value ETF, which includes Berkshire Hathaway (Berkshire) and general motors (General Motors Co), fell about 3.5% over the same period.

In the article, which begins with "the day the music dies", Mr Gross said the yield on the benchmark 10-year Treasury note was "moving towards 4.75 per cent", not far from the peak of 4.74 per cent set this year on Thursday.

"Why hold bonds? The post wrote, pointing out that the yield on US Treasuries was 5.25 per cent. Gross is a co-founder and former chief investment officer of Pacific Investment Management.

Mr Gross said one of his favorite deals, pipeline master limited partnerships, the pipeline owner limited partnership, was strong, but investors should not "overincrease their holdings".

MLP trades on exchanges, focuses on natural resources such as oil and gas, and offers higher yields and tax advantages. The investor said he owns Western Midstream Partners LP and MPLX LP and highlighted the high dividends of both companies.

The s & p 500 fell 1.6% on Thursday after a report showed that u.s. economic growth slowed last quarter, inflation rose and Meta platform performed poorly. Traders also lowered their expectations of the timing of the Federal Reserve rate cut, which has now fully digested expectations of the Fed's first rate cut in December.