Pimco co-founder Bill Gross, also known as the bond king, believes that Donald Trump’s victory in November’s US presidential election would be more detrimental to bond markets than Joe Biden’s re-election, he said in an interview with the Financial Times.

“Trump is the more bearish candidate simply because his agenda is for more tax cuts and more expensive things,” said the notable bond investor.

Gross also noted that the Biden administration is responsible for trillions of dollars in deficit spending. Still, he believes electing Trump would be “more destructive.”

Gross recently said that the “Total Return” bond investing strategy he helped create in the behind schedule 1980s is dead. “The deficit is the culprit; $2 billion [annual] the increase in supply… will put some pressure on the market,” he told the FT.

Instead, he prefers a closed-end fund investing in preferred securities, contingent capital and up to 20% private credit, he believes he said.

On the stock market, Gross said investors need to “moderate their expectations” rather than expecting a repeat of last year’s S&P 500 (SP500) return of 24%. “Over time, markets should mark a comeback. For me, this means that prices will increase less than before.”

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