Pimco’s Gross Increases Government Debt to Most in Five Years

Bill Gross has increased the proportion of government debt in its portfolio to the highest level in 5 years. This shows how overvalued asset prices Bill believes them to be.

The "Total Return Fund" currently has 63% of its assets invested in government debt. He thinks that with low interest rates, regulatory tightening, lower consumption, slower growth and shrinking global economic role for America, investors will be experiencing low returns for the subsequent years. This is his rationale for over-weighting on government debt.