Europe To Stay Dysfunctional Family In Debt Straitjacket: PIMCO's Bill Gross

PIMCO’s latest Investment Outlook by Bill Gross attached: Family Feud.

Investors will likely be heartened by recent European policy proposals, but Euroland will remain a dysfunctional family no matter what the outcome.

Investors should recognise that Euroland’s problems are global and secular in nature; it will be years before euroland and developed nations in total can constructively escape from their straitjacket of debt.

Global growth will likely remain stunted, interest rates artificially low and investors continually disenchanted with returns that fail to match expectations.

Investors should consider risk assets in emerging economies, such as Brazil and Asia, and bonds in the strongest developed economies, where the steep yield curve may offer opportunities for capital gains and potentially higher total returns