This ones for you Teacherman…
June 3rd, 2009
Pimco’s Gross rightly points out the bond investors should diversify their out of the dollar denominated bonds. I certainly do not disagree to an extent. I see no reason why the standard retail investor should hold a 10% allocation in something like EMB, IGOV, or ISHG. However part me wants to say that I don’t trust the governments of other nations just as much as I don’t trust the U.S. government. Controlling spending and subsequent deficits is not something any government has ever really been able to do. It’s really just a question of investing in the most productive nation.
Productivity, what a novel thought.
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