Gross: Active Management Would Fare Better In Bear Market

The transcript discusses the impact of financial repression on investment returns, highlighting the challenges faced by active managers in a low interest rate environment. It suggests that a normalized interest rate could benefit asset management, insurance companies, and banks. The discussion also covers the potential shift from passive to active management in bear markets, emphasizing the need for the financial asset management industry to adapt.

How does the current environment affect the returns for equities?

What impact do near-zero interest rates have on active money management?

In what ways could a normalized interest rate environment benefit asset management companies?

What challenges do financial management companies face due to the compression of yields?

Discuss the potential effects of returning to a savings-based economy on the financial sector.