28 January 2010

The Ring of Fire

Bill Gross is always providing interesting readings. In the PIMCO February issue, Bill discusses the deleveraging we are witnessing and its consequences for a number of countries going forward.

I am very much in accordance with it conclusions which I have long advocated all along this blog and for nearly 10 years at P&C Global Wealth Managers:
  • Invest in emerging economies and themes linked to its growth (retailing, energy, commodities and even financials)
  • Germany will get out this crisis as the only real powerhouse in the EU, pending bailout of Club Med countries (Spain, Portugal, Greece and to some extent Italy).
  • In other developed countries, Canada is the best place to invest
  • Japan is plagued with its demographic demise and deflationary environment, whilst still remaining an innovation center

PIMCO: Investment Outlook - Bill Gross, February 2010