Investing.com -- Prominent investor Bill Gross has expressed his concerns about the volatility of U.S. stocks and their dependence on President’s decisions. His portfolio of defensive stocks remains in the green, despite the market’s fluctuations. He questioned the wisdom of owning such unstable stocks, the price of which could change based on the President’s mood and policy decisions.

On Wednesday, Wall Street’s primary indexes, including the S&P 500 , saw a substantial rise of more than 8%. This surge was a response to President Donald Trump’s announcement of a 90-day tariff pause for many countries, effective immediately. This decision brought relief to investors who were anxious about the global economic consequences of U.S. trade policies. Despite this, Trump increased duties to 125% for China.

Gross also shared his thoughts on the potential long-term effects of the current market situation. He suggested that the recent market "crash" could significantly impact millennial and Gen Z investors. The previously perceived infallible method of making money may now provoke caution and more conservative attitudes. These changes could lead to lower Price-to-Earnings (P/E) ratios, higher yields, and low single-digit returns.

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