Fink Echoes Gross: U.S. Equities Better Deal

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According to
Bloomberg
, the CEO of BlackRock Laurence Fink is in agreement with PIMCO's Bill Gross--U.S. equities offer better value than government bonds. Expressing a bullish sentiment about the U.S. dollar, Fink stated that dividend paying stocks were far more attractive than Treasuries. While 10 year treasuries are presently returning near 3%, equities can offer 3.5% dividends on top of general market growth. If Fink's points are valid, why would investors ever shun equities in favor of treasuries? On Friday,
Bill Gross
appeared on CNBC and expressed near identical sentiments, arguing that equities were a better deal than treasuries--even Treasury inflation-protected securities. While the Federal Reserve's involvement in the Treasury market may be skewing true valuation of treasuries for the time being, investors may wish to take a short stance on Treasuries, as that involvement may end later next month, as the Federal Reserve plans to unwind QE2. Traders looking to go short U.S. treasuries may wish to consider ProShares UltraShort 20+ Year Treasury
TBT
. TBT may rally if the Treasury market is tanking.
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Posted In: Long IdeasBondsShort IdeasMovers & ShakersForexMarketsTrading IdeasETFsBill GrossBlackrockBloombergCNBCLaurence FinkPIMCOThe Federal Reserve
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