http://www.huffingtonpost.com/2012/01/04/bill-gross-paranormal_n_1183525.html

"We are left with zero-bound yields and creditors that trust no one and very few countries. The financial markets are slowly imploding - delevering - because there's too much paper and too little trust," he said.

Those factors may lead financial markets to experience "the fat-left-tailed possibility of unforeseen - delevering - or the fat-right-tailed possibility of central bank inflationary expansion."

Gross told investors they should lower their return expectations for 2012, predicting 2 percent to 5 percent returns on investments in stocks, bonds and commodities.

(Reporting By Katya Wachtel; editing by Jeffrey Benkoe)

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