“Invest in developing economies w attractive balance sheets: Brazil, Mexico, best examples,” Gross tweeted. “Stocks & bonds.”
- Vanguard Emerging Markets ETF (NYSEArca: VWO)
- iShares MSCI Emerging Markets Index Fund (NYSEArca: EEM)
- iShares MSCI Brazil Index Fund (NYSEArca: EWZ)
- iShares MSCI Mexico Index Fund (NYSEArca: EWW)
Fiscally, developing countries, like Brazil and Mexico, look healthier than developed economies. Emerging markets are low on debt, have better demographics and are in a better position to expand economically.
Lastly, Gross suggests looking into “real assets.”
If inflation does begin to rise, prices on real physical assets, like gold, will hold value.
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Max Chen contributed to this article.’
Full disclosure: Tom Lydon’s clients own BOND, GLD, EEM, TIP and DVY.