How to Prepare for the End of the Bubble
I have been concerned about overall asset inflation for the past year myself and have rebalanced my self-directed pension funds to be a bit more liquid than they used to be.
Investors should prepare themselves now for the end of the U.S. housing bubble by avoiding assets like equities, real estate, corporate debt and junk bonds, said Bill Gross, managing director of Pacific Investment Management Co.
In his monthly investment outlook, Gross advised investors to "cut the fat" from their portfolios.
Gross, a well-regarded bond bull, said the housing bubble is likely to either stop inflating, deflate or pop within the next few months, leading to a slowdown in economic growth. Read his commentary.
...If the bubble ends, investors must prepa re for the "debt liquidation" that Federal Reserve Chairman Alan Greenspan warned about 10 days ago, Gross wrote.