Bill Gross on Monday said the Nasdaq (^IXIC) hitting 5,000 represents “a little bit of a bubble” in some technology stocks, including those that are up 10 percent and 15 percent year to date. The Janus Capital (JNS) fund manager and Pimco founder added that negative yields promote bubbles and, to some extent, distort capitalism.

It’s not the same as it was in 2000, but it’s “certainly an overvaluation that might, at some point, be corrected,” Gross said on CNBC’s “Power Lunch.” He said negative interest rates “confiscate capital” and cause people to mindlessly pile into equities.

“There is a translation mechanism that the central banks are willing to endure,” Gross said.

Read More Gross takes aim at central banks “What we’ve seen over the past few months, the initiation of quantitative easing in euroland and the continuation of quantitative easing in Japan, [is] huge amounts of money, which liquefy markets and which promote an upward drift in equity markets all around the world,” he said. Earlier Monday, in his latest letter to investors, Gross warned that low interest rates globally destroy financial business models that are “critical to the functioning of modern-day economies.” Gross forecasts that ultra-easy central bank monetary policies will begin to hurt the global economy. “Investors and bondholders who have cheered every instance of lower and now subzero yields in developed countries because of near-term capital gains that accompany them, must now beware of the potential negative consequences going forward,” Gross said in his address to clients. “Central banks have gone and continue to go too far in their misguided efforts to support future economic growth.”

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