“The US economy is headed for a period of higher inflation and lower growth that makes the nation’s debt unappealing when measured against its global competitors, Pimco’s Bill Gross told CNBC. The head of the world’s largest bond firm, with nearly $1.3 trillion under management, explained the firm’s position further as it has cut out all longer-dated exposure to US debt. Instead, the firm is comfortable with more stable countries such as Canada, Brazil and Germany. At the same time, Pimco also has turned to the equity markets to combat low-yielding US debt as the country tries to get its finances under control.” Read more.
“Slow Growth, Inflation Makes US Bonds Bad Buy: Gross”
CNBC, May 16, 2011.
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