PIMCO’s Bill Gross is out with his latest investment outlook.
He talks about the diminishing marginal return of US credit and warns about a Japanese-style implosion as the system breaks down.
So our credit-based financial markets and the economy it supports are levered, fragile and increasingly entropic – it is running out of energy and time. When does money run out of time? The countdown begins when investable assets pose too much risk for too little return; when lenders desert credit markets for other alternatives such as cash or real assets.
He continues to favor investments in Italy, Australia, Canada, gold and emerging markets.
