Bill Gross: Investors Should Look at Mexico, Brazil

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.

Contact U.S. News


    Get the best of CNBC in your inbox

    To learn more about how we use your information,
    please read our Privacy Policy.
    › Learn More

Don't Miss

U.S. Video

  • This video is 90 seconds of cyber attacks happening around the globe, courtesy of Norse Norse is a technology company that bills itself as the "global leader in live attack intelligence." The company offers continuously "updated and unique Internet and darknet intel that helps organizations detect and block attacks that other systems miss."

  • Is this breakout story on your radar? Mad Money host Jim Cramer is about to put it there.

  • Paul Hickey, Bespoke Investment co-founder, discusses the huge divergence between the S&P 500 and the energy sector.