Bill Gross: Investors Who Stay in Treasurys 'Will See a Haircut'

Bill Gross reports:

Investors looking to preserve their purchasing power will have to avoid Treasurys and put their money in “real assets" such as stocks and real estate, Bill Gross, Pimco co-founder, told CNBC’s “Closing Bell” on Monday.

“In the Treasury market all interest rates are on a negative basis,” Gross said. “Risk averse investors looking to hide in Treasurys will see a haircut relative to future inflation.”

So in order to maintain purchasing power, investors are being forced into riskier assets like stocks, high-yield bonds, real estate and gold, Gross said.

Thanks to the Federal Reserve! Don't expect Barack Obama to weep for savers.