Tuesday, August 30, 2011

($IEF, $TLT) PIMCO's investment outlook

We are into the "bumpy journey" phase of our New Normal where 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 counters the rush for the exits with an enlarged daily checkbook.
In the U.S., discord between rich and poor has led to lower, not higher, Treasury yields as approaching recessionary winds force the Fed and private investors to favor bonds.
We prefer investing in the "cleaner" dirty shirt countries of Canada, Australia, Mexico and Brazil, along with non-dollar currencies that have strong trade ties with the Asian continent.

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