Bill Gross, the world's biggest bond fund manager at Pimco, said the U.S. is the least bad choice in a poor global investment environment, but this could change if Washington doesn't get control of the nation's fiscal situation.
The Pimco co-founder said investors should also avoid the euro zone as a whole, but he suggested investors might want look at Mexico and Brazil. “They have much more attractive balance sheets, higher growth rates, and more attractive and higher interest rates, as well,” he said.
Gross called “America is the cleanest dirty shirt in terms of financial markets" on CNBC's "Street Signs"Thursday.
“It’s where money is moving towards out of Euro land and out of all the risky peripheral countries,” he said.
Gross highlighted relatively low debt, reserve currency status, and strong property rights as reasons investors continue to favor the U.S. But he cautioned that “it’s not ultimately and inevitably secure in this position.”
– Reuters contributed to this article.