Pimco’s Bill Gross issued his December investment missive this morning and the verdict is: Buy utilities. Gross’s point is that the U.S. Federal Reserve is trying to “reflate” the U.S. economy by forcing investor’s to buy corporate bonds and stocks, by keeping interest rates so low that money markets are a waste of your investment. Gross advises that because most companies will be highly regulated for the foreseeable future, why not just put your money in companies that are already highly regulated and that have dividends of 5% to 6%, namely utilities. “In a low growth environment, it seems to me that a company�s stock should yield more than its less risky debt,” writes Gross, “and many utilities provide just that opportunity.” Gross offered no specific names to pick.
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