Middle-aged investors looking to retire in about 20 years should position their portfolios to have a 25 to 30 percent stake in equities outside of the United States, Bill Gross, co-chief investment officer at PIMCO told CNBC Monday.
"Stocks or equity investments are better made in strong growth economies—that's not the US," Gross said. "You go where the growth is, and today, that would be in developing markets such as Brazil or Asia."
The US stock market is likely the most overvalued global market, Gross said, pointing out that it has a higher P/E ratio than the United Kingdom or Brazilian markets, but a lower yield. Ten-year bonds in those two countries also far outyield those in the United States, he said.
"The US is attracting foreign investments from China and from Japan for alternative reasons," he said. "In both of those cases, on the bond side and the stock side, they seem to be overpriced." Click to see the rest.
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