It might seem counterintuitive for U.S. investors to allocate a bigger share of their portfolio to developing markets at a time when China’s stock-market selloff rattles global markets right after a year of dreadful emerging-market performance. But that is exactly what bond guru Bill Gross urges market participants to consider. In his latest investment outlook released Thursday, the billionaire investor made the case for increasing exposure to developing markets over the long term, citing demographic reasons.

Treasury prices continued to rise, pushing yields to their lowest level in four weeks, as demand for so-called haven assets, like U.S. government debt, surged amid the global stock selloff. Yields fall when prices rise and vice versa. The yield on the 10-year benchmark Treasury note fell 1.7 basis point to 2.160%, its lowest level since Dec. 11. The yield on the 2-year Treasury fell 2.4 basis points to 0.960% and the yield on the 30-year Treasury bond inched 0.8 basis point lower to 2.932%. FULL REPORT