Aberdeen Asset Management announced that it is underweight on stocks, triggering Bill Gross [profile] to warn against risk assets, Bloomberg News reports.

In a Twitter post picked up by the news service, the Pimco Total Return Fund PM said the vulnerability of risk markets increase as the "monetary bag of tricks empties."

Peter Elson, Asia-Pacific strategy head at Aberdeen, said in an interview with Bloomberg Television:

We’re still certainly very comfortable running our underweight equity positions that we took out in March. Economies will continue to contract. There will be this realization that the governments are not perhaps as able to act as they have been in recent years.

Data from Bank of America Merrill Lynch shows that since end of March, global sovereign bonds have gained 1.9 percent while a 7.9 percent was lost by the MSCI World Index of equities in the same period. 

Edited by: HFD


Stay ahead of the news ... Sign up for our email alerts now
CLICK HERE