According to Mohamed El - Erian , chief strategist at PIMCO, the largest bond fund in the world, the U.S. Federal Reserve's decision not to reduce monetary stimulus QE3 program gives investors a few new features.
According to El - Erian , sectors such as stocks that are sensitive to the dynamics of interest rates should be the winner . In addition, the winner can remain companies that actively use financial engineering - that is actively using the tools of share repurchases and dividend payments to constantly improve . " Baybeki " and higher dividend payouts are possible if the companies have the opportunity to borrow from the banks money at ultra-low interest rates. Extending QE3 to fully provide the economy with cheap money on the background of near-zero interest rates.
And, moreover , do not forget about the sectors where investors have avoided in the past few months amid speculation about the likely compression of QE3. For example, one can speak of a segment of high quality municipal bonds , as well as the segment of the debt of developing countries.
