Money for Nothing and….

Despite having picked the Wrong Trade, once, you should listen when Bill Gross speaks. PIMCO’s latest reading summary. We advise to read the whole article here.

• Once interest rates inch close to zero and discounted future cash flows are elevated in price, it’s difficult to generate much more return if economic growth doesn’t follow.
• Equity markets should be dominated by dividend yields and the return of capital via share buybacks, as opposed to growth.
• In fixed income assets, we suggest that portfolios should avoid longer dated issues where inflation premiums dominate performance.