Comments on: Bill Gross: “almost all assets appear to be overvalued on a long-term basis” http://www.creditwritedowns.com/2009/10/bill-gross-almost-all-assets-appear-to-be-overvalued-on-a-long-term-basis.html Finance, Economics and Markets Fri, 10 Feb 2012 00:37:00 +0000 hourly 1 By: Edward Harrison http://www.creditwritedowns.com/2009/10/bill-gross-almost-all-assets-appear-to-be-overvalued-on-a-long-term-basis.html#comment-57443 Edward Harrison Tue, 27 Oct 2009 18:34:00 +0000 http://www.creditwritedowns.com/2009/10/bill-gross-almost-all-assets-appear-to-be-overvalued-on-a-long-term-basis.html#comment-57443 It seems like Gross is also saying to favor treasuries up through the ten-year. Last year, I thought we were seeing a bubble in Treasuries (some called it a flight to liquidity). But, after the pullback and the lack of policy traction we have seen, it does seem like a Japanese scenario is the best we could hope for. Your "world of low returns due to little innovation and mild deflation" seems on the mark. It seems like Gross is also saying to favor treasuries up through the ten-year. Last year, I thought we were seeing a bubble in Treasuries (some called it a flight to liquidity). But, after the pullback and the lack of policy traction we have seen, it does seem like a Japanese scenario is the best we could hope for.

Your “world of low returns due to little innovation and mild deflation” seems on the mark.

]]> By: kynikos http://www.creditwritedowns.com/2009/10/bill-gross-almost-all-assets-appear-to-be-overvalued-on-a-long-term-basis.html#comment-57442 kynikos Tue, 27 Oct 2009 18:12:00 +0000 http://www.creditwritedowns.com/2009/10/bill-gross-almost-all-assets-appear-to-be-overvalued-on-a-long-term-basis.html#comment-57442 One of the few asset classes that I do not see as "overvalued" are Treasury bonds. 10 year Treasuries at 350 basis points would be an excellent asset to own if one expects a world of low returns due to little innovation and mild deflation. If one is bearish on emerging markets, then buy Treasuries. One of the few asset classes that I do not see as “overvalued” are Treasury bonds. 10 year Treasuries at 350 basis points would be an excellent asset to own if one expects a world of low returns due to little innovation and mild deflation.

If one is bearish on emerging markets, then buy Treasuries.

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