Bill Gross buys into European Equity

Bill Gross, on CNBC, speaks on PIMCO's move into buying European equities.


Key reason being European corporates look attractive based on PE valuation (relatively low PEs) where some are deemed almost as secure as government bonds. Mainly due to the companies being MNCs with international exposure (where earnings are derived not primarily from intra-Europe trade) and strong balance sheets.

He did highlight that the 'fat tail risk' is still likely from the ongoing debt crisis. A lack of confidence in the 750b euros rescue package & doubts on implementation of austerity measures continue to show in terms of market volatility. The question remains whether this will smooth out over time. Perhaps Q2 earnings reporting from July will shed light on how strong (or weak?) the recent bounce off the bottom is.