In a very rare recognition that any asset class -- besides bonds -- is worth owning, PIMCO's Bill Gross writes in his latest Investment Outlook that global equities are cheaply valued and their dividend yields are higher than bonds' income in many parts of the world. Nonetheless, Gross cannot restrain himself from warning that if growth falters, there may be more downside to come in the equity markets.
In addition, the commentary reviews the following topis:
- Fear, lack of policy options and loss of control can dominate relationships.
- Liquidity concerns may affect all European peripheral bond markets unless the European Central Bank provides an enlarged daily checkbook.
- In the U.S., lower Treasury yields have resulted from investors' perception that recessionary winds are approaching.
Click here for Gross' commentary.