Bill Gross, managing director of investment manager PIMCO, says stocks are selling at very low historical levels — but only if looked at “in the context of a financed-based economy once dominated by leverage, cheap financing, and even lower corporate tax rates”. Unfortunately, Gross writes on PIMCO’s web site, “That world … is in our past, not our future”. Gross — who six years ago incorrectly predicted the Dow, then at about 8,500, would fall to 5,000 — says increased government regulation, decreased leverage, and higher taxes will hamper entrepreneurialism and innovation. He adds that he still believes in stocks for the long run — as long as they are purchased for the right price.