Gross: Buy Canadian, German Bonds; Sell Greek, U.K. Debt

Pimco chief investment officer Bill Gross recommends that investors buy government bonds of countries with strong finances and sell government bonds of the weak.

“Investors should obviously focus on those sovereigns where fundamentals promise lower credit or inflationary risk,” he wrote in his latest commentary on Pimco’s Web site.

“Germany and Canada are amongst those at the top of our list while a rogues’ gallery of the obvious, including Greece, euro land lookalikes and the U.K. gather near the bottom.”

Gross has particularly scathing comments for the U.K., whose budget deficit totals about 12 percent of GDP. That almost matches basket case Greece, whose gap amounted to 12.7 percent of GDP last year. (more)