PIMCO's $237 billion Total Return Fund said it is increasing its holdings in debt of corporations and of emerging markets like Brazil and Mexico. Gross said it would return to U.S. bond holdings when yields returned to attractive levels.
Investors got another scare today (Thursday) when the Dow Jones Industrial Average dipped below 12,000 in trading, falling over 200 points.
The PIMCO news and stock market drop sparked pressing questions from investors:
- What does Gross' move mean for the bond market?
- Should bond investors get out of U.S. debt, too?
- Is the bull market over?
- And is the world broke?
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