market folly

Next up, we have Bill Gross' February 2010 market outlook. Today is 'wisdom Wednesday' (pardon the lame name) here at Market Folly as we have plenty of interesting reads to share with you and earlier posted Bill Gates' 2010 annual letter. Moving on, Bill Gross of course is PIMCO's bond vigilante and in the past we had covered his thoughts on why the market is up so much from the lows.

His latest commentary entitled, "The Ring of Fire" focuses on how investors should invest in 'less levered countries'. In terms of identifying such countries, Gross says to look for a growing consumer sector, low national debt levels, a savings oriented economy, and high reserves. He advises investors to find countries like Brazil and China, but ones that are less bubble-prone. Specifically, he points out to avoid the UK as their high debt coupled with possible currency devaluation presents high risk. Among countries that are already developed, Gross favors Canada and Germany. His latest piece comes after his January commentary where he examined the Federal Reserve's exit strategy.

Embedded below you'll find the February 2010 market outlook from PIMCO's bond bandit Bill Gross:




Also, you can download the .pdf here.

For more insight, check out Bill Gross' January commentary, as well as his thoughts on how he was betting on deflation.