Signaling the accelerating skid of the evil empire (that would be us…), the big kahuna of bond managers is getting out of dollars and into four different currencies.
It will not surprise that hard upon the heels of Incurious George's Excellent Mideast Adventure, the suicidal lemming rush of the Teabaggers and their Repugnant allies is making what was once a reserve currency par excellence something of a faded glory.
What does give pause, however, is that Gross points to four nations whose good governance, thrift and sensible industrial and social polity promise a better store of value for the international investor.
Two are no surprise: China (Mao is having his revenge…) and Canada (how can you go wrong when you house the Mighty Quinn and Acanuck?)
That said, the other members of the favored quartet are Brazil and Mexico, notwithstanding the drug war insanity that roils the latter, and the carioca sensibility that makes the former so attractive to this stripper trying to get back in the game (Ed note: Sure, Rog. You're gonna compete throwing it around in the land of samba-lotsa luck…)
It comes, then, to this. Short dollars, go long Reals and Pesos, if you want to prosper like PIMCO.
Are we humbled yet?