Bill Gross is tempering his now-famous critique of equities, telling CNBC that while stocks are still likely to return more than most other asset classes, they would occupy a less cherished - and lucrative - place in investors' portfolios.
Gross, Founder and Co-Chief Investment Officer of Pimco, manager of the world's largest bond fund, told CNBC's "Closing Bell" that a "30, 40, 50-year old cult" of equities returning double-digits was nearing an end.
Investors, especially the "Baby Boomers" born after World War II, should brace themselves for lower returns. He differentiated between stocks as an asset class, and the unrealistic expectations some investors have about their potential for returns, which he called a "cult".
"Equities have reached a dead end in terms of significant appreciation," Gross said. "Equities are still alive, but the cult of equities is dying."
He said investors may want to search for investments other than in stocks and bonds, such as land or other assets.
Watch the segment on CNBC here