Bill Gross Says Dollar Could Drop 20%

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Bill Gross, well-known PIMCO fund manager, said that continued unconventional Fed easing (aka QE2) could lead to a 20% drop in the dollar. Gross suggested that investors should allocate more of their investments towards non-dollar denominated assets to capitalize on the possibility of a severe decline in the value of the dollar.

“Pension funds and Americans, in general, have a problem because their liabilities are dollar-denominated. It’s probably worth the risk of getting out of dollars and getting into emerging countries and going where the growth is. All of which entails risk relative to the home country. But there’s probably a bigger risk in simply staying comfortably within the confines of dollar-based investments.”

Source: CNBC
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