It's coming, and just like the dinosaurs, investors only see a faint light in the sky.
Gross has it right.
* * * * * J B K * * * * *
San Francisco
Pimco, which operates the world's largest bond fund, continues to avoid UK gilts and U.S. Treasury bonds because debt levels in the two countries pose a serious threat to investors' returns, Bill Gross, Pimco's co-chief investment officer, said on Monday.
Even though the UK and the United States are "decently positioned" to escape their individual debt crises, Gross said they are not good portfolio investments.
"There are more attractive choices" than UK gilts and U.S. Treasuries, Gross wrote in his monthly report to clients on Pimco's website. "Simply comparing Greek or UK debt to U.S. Treasury bonds is not the golden ticket to alpha generation in investment markets," he said. "U.S. bonds may simply be a 'less poor' choice of alternatives."
