Bill Gross warned that risk markets are vulnerable as the monetary bag of tricks empties. Gross prefers U.S., Mexico and Brazil debt with intermediate maturities over the next few years, and stocks in companies that produce stable cash flow in high growth markets. Gross increased the proportion of U.S. government and Treasury debt in the Total Return Fund for the first time since January.
Peter Elston at Aberdeen Asset Management is underweight equity positions on the expectation that economies will continue to contract and the realization that governments are not as able to act as they have been in recent years.
Bob Baur at Principal Global Investors sees a pickup in economies.
Noah Weisberger at Goldman Sachs recommends shorting the S&P 500 due to incremental U.S. monetary policy on hold and a deteriorating growth picture near term; sees the index dropping to 1,285.