The Impact of Deleveraging and Re-Regulation

In his latest Investment Outlook, PIMCO's Bill Gross warns of the effects of consumers' deleveraging and the government's re-regulation: 

  • Slower economic growth
  • Higher corporate tax rates
  • Narrower corporate profit margins
  • Smaller returns for investors

Not surprisingly for a bond manager, Gross' recommendation is  for investors to "stress secure income offered by bonds and stable-dividend-paying equities."  Please click here for his commentary.