(Bloomberg) -- Pacific Investment Management Co.’s Bill Gross said asset markets from stocks to real estate are not overpriced because the Federal Reserve’s long-term policy rate will be half of what policy makers are forecasting.

“Estimates which average less than 2% are much closer to financial reality than the average 4% ’blue- dot’ estimates” of Fed policy makers, Gross wrote in his monthly investment outlook posted on Newport Beach, California- based Pimco’s website today. He was referring to the Fed’s neutral policy rate, a level that would be consistent with full employment, growth and stable prices.

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