Bill Gross Found A Safe Haven In Brazil

With no immediate resolution to the eurozone crisis, PIMCO’s Bill Gross predicts a 30% – 40% chance of a recession in the U.S.

Gross who earlier said “we’re all screwed” said in an interview with CNBC that the U.S. monetary policy has reached a cul-de-sac but U.S. treasuries are still the “cleanest dirty shirts”. He also encourages investors to look into investing in Brazil and Asia, specifically Brazil’s short-term bonds:

“We’re investing in short-term Brazilian bonds under the recognition that if the global economy slows down then Brazil itself will have to lower interest rates, and that produces a price increase in terms of their bond market. …That’s a safe haven from the standpoint of higher bond prices and they also have an attractive balance sheet.”

Now here’s Gross on CNBC talking about PIMCO’s investments in Brazil:

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