A few months ago Bill Gross, co-founder of PIMCO and the country’s most prominent bond expert, wrote a provocative monthly newsletter. He evaluated countries based on their total public sector debt as a percentage of gross domestic product (GDP) as well as their annual deficit, which is making matters worse. Gross singled out those countries heaping significant deficits on their mountain of debt and called them “The Ring of Fire.”
The eight countries he identified were Japan, Italy, Greece, France, the United States, the United Kingdom, Ireland and Spain. The International Monetary Fund (IMF) cautioned that rising government debt has replaced financial industry stress as the biggest threat to the global economy. Gross warned his readers to watch “the U.S. with its large deficits and exploding entitlements.” We now recommend that you reduce your investments in these countries. (more…)
Cracks in the Crystal Ball
One of the mysteries of life in the financial markets is that many people still seem to believe you can build a successful investment strategy around forecasting, despite the road being littered with the corpses of those who got it wrong. (more…)
By Evor C. Vattuone | Posted in Asset Management, Investing, Market Commentary | Tags: building wealth, fixed income investments, Investing, market timing, where to invest | No Comments »