Gross: Austerity Won’t Work

PIMCO’s Bill Gross says that what is needed to fix the European debt crisis is growth and budget discipline — not mere austerity. “No, that doesn’t work,” Gross says of the austerity approach in an interview with the Associated Press. “Eliminating a budget deficit won’t produce growth. It really requires a delicate combination of growth and budget discipline over the longer term. Policymakers have it tough.” Gross says that bond investors do look at debt levels, but they also look at growth. And right now, that’s what’s lacking in Europe. “If a country can’t grow its way out of its […]

Despite Euro Chaos, Fisher Still Bullish

While the chaos surrounding recent elections in Europe is scaring many investors, author and top-performing money manager Kenneth Fisher says it doesn’t change his bullish outlook for stocks for the year. Fisher tells Reuters that he thinks the European debt situation won’t topple the stock market, and that the fears are overhyped.  “We have seen this movie about 15 times, we should be ashamed of ourselves to fall for the same movie three years in a row,” he said. “If this isn’t priced in, I don’t know what is.” Fisher thinks the shift toward anti-austerity candidates in Europe could actually […]

Mobius Bullish on Europe

Templeton Asset Management’s Mark Mobius says he is upping his exposure to European stocks, despite the continent’s lingering debt woes. “The stocks in the European countries have gone down excessively as a result of the bad news emanating from this crisis and we find good investment opportunities at bargain price and we are increasing the purchases of these stocks,” Mobius says, according to Bloomberg. Mobius adds that “we don’t think the crisis will last forever and the European economies will recover nicely, there will be much more fiscal disciple in one year or two”. He says he’s buying consumer-oriented stocks, […]