Wednesday, August 19, 2009
Pimco: Dollar is Losing Reserve Status, Diversify Your Currency Holdings
Pimco portfolio manager Curtis A. Mewbourne writes that the dollar is losing its status as world reserve currency as the U.S. pumps massive amounts of money into the system. (I - and many others - have repeatedly written on this issue).
The dollar will probably depreciate the most against emerging market currencies. Pimco is advising clients to diversify out of the dollar.
Indeed, as Bloomberg points out:
Bill Gross, who runs the $169 billion Pimco Total Return Fund, is also warning the U.S. currency will fall.
Holders of dollars should diversify before central banks and sovereign wealth funds do the same because of concern government budget deficits will deepen, Gross said in June.
1 comment:
→ Thank you for contributing to the conversation by commenting. We try to read all of the comments (but don't always have the time).
→ If you write a long comment, please use paragraph breaks. Otherwise, no one will read it. Many people still won't read it, so shorter is usually better (but it's your choice).
→ The following types of comments will be deleted if we happen to see them:
-- Comments that criticize any class of people as a whole, especially when based on an attribute they don't have control over
-- Comments that explicitly call for violence
→ Because we do not read all of the comments, I am not responsible for any unlawful or distasteful comments.
Posts
joll
ReplyDelete