Investments | Viewpoints and Perspectives by Prosperity Concierge

Follow the Money – Dump Treasury Bonds and Invest in Emerging Markets

Bill Gross runs Pacific Investment Management Company (PIMCO), a company synonymous with bond investments, especially U.S. Treasuries.
Earlier this year PIMCO announced that their flagship fund, Total Return Fund, is no longer invested in U.S. Treasuries.
Bill Gross is worried that, unless entitlements are substantially reformed, the U.S. will likely default on its debt; not in conventional

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‘Rollerball’ Explains the Disconnect Between Government Debt and Soaring Stock Markets

In one scene in the 1975 movie “Rollerball”, Mr. Bartholomew (John Houseman), Executive Director of the Energy Corporation, explains to Jonathan E (James Caan) that all of the governments are broke. Only corporations have money…and power.
The day after Standard and Poor’s threatens to downgrade U.S. sovereign debt worldwide stock markets go up, underscoring the disconnect between

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Emerging Markets vs. Domestic Companies: At Home Cash is Tight, Being Used to Pay Down Debt, Not Spending

Companies that are in the emerging markets, or U.S. domestic companies that export to emerging markets, are doing well, since emerging economies are doing well.
But for companies whose primary customer is the U.S. consumer, business is slow.
James Trebilcock, chief marketing officer for Dr. Pepper Snapple Group, says “cash at home is tight, and people are

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As we invest, will the stock market let us retire?

We invest in the stock market so that we can retire some day. What we expect from the stock market is a return on our investment – a return that includes an “equity premium.” The equity premium appears to be getting smaller.
There are several reasons for this.
Better information, and the tools to analyze the information, has become

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Emerging Markets: Decoupling Creating an Investment Opportunity

Emerging markets are decoupling from developed countries due to their higher rates of growth and lack of exposure to debt. Robert von Rekowsky manages the Fidelity Emerging Markets Fund and discusses his perspectives about the decoupling that is taking place.
Mr. Rekowsky:
Ten years ago, the economies of the developing world were closely tied to the developed world.

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Debt in Emerging and Developed Economies: A Reversal That Will Affect How We Invest

Ramin Toloui, Executive Vice President at PIMCO, shares his views on how developed and emerging economies are managing debt and how this is a complete reversal from historical experience. This reversal will affect how we invest in the future.
Mr. Toloui:
Emerging markets played a role in the global economy’s recovery last year that was historically unique. Like industrialized

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The Inflation Outlook and How It Should Influence Your Investments

The forecast for inflation is a topic of considerable debate, partly because it has important investment implications, and partly because forecasts range from expectations of high inflation to Japan-style deflation.
Few firms have as much interest ininflation as PIMCO because of the effect of inflation on the valuation of its portfolio.
Mihir Worah, managing director and head

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Wealth and Equities: Cash and Global Growth to Propel Stocks

The availability of money to spend, global growth, especially in emerging markets, and greed, all help to explain why equities can be expected to be a great investment going forward.
Zachary Karabell, president of River Twice Research and the author, most recently, of “Superfusion: How China and America Became One Economy”, helps us to understand, in

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Warren Buffett on Investing

Warren Buffett is one of the most successful investors of all time. People want to know Warren’s thoughts about investing topics – and for good reason. Here are some of Warren’s thoughts about investing:
Investing
Read and think before you invest.
Read everything on investing you can get your hands on and fill up your mind with various

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Cost of Debt: Interest Rates to Remain Low

Federal Reserve Bank of Chicago President Charles Evans said the U.S. jobless rate may remain higher than 9 percent at the end of this year, underscoring the potential need to keep interest rates low into 2011.
The unemployment rate may be “nine and a quarter” at the end of 2010, and higher than 7 percent at

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Viewpoints and Perspectives by Prosperity Concierge

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