Monday, May 17, 2010

Even Bill Gross!

"'Bonds have seen their best days,' [Bill] Gross told Bloomberg Radio in a Mar. 25 interview. Real [inflation-adjusted] interest rates are moving higher.' ... When rates go up, bond prices go down, and that means a bearish market for bondholders. ... Pimco, which announced in December, it would offer stock funds for the first time, is advising investors to buy the debt of countries such as Germany and Canda that have low deficits and higher-yielding corporate securities. ... Gross's global forces extends beyond bonds. The No 1. thing Americans should do to try to make back wealth is to 'move outside of the [US] ' in choosing stocks, he says. ... Whatever approach investors take with their bonds, Gross suggests a wise motto to adopt in his latest investor commentary: When evaluating sovereign debt, 'Don't trust any government and verify before you invest'," my emphasis, Tom Keene & Susanne Walker at Businessweek, 12 April 2010, link:

I should reconsider my position. I agree with Gross. In part. Did Gross discuss this with Zimbabwe Ben (ZB)? If so, what did ZB say? As long as you don't buy financials, I don't see what's wrong with US stocks. Now Gross tells us not to trust governments.


Anonymous said...

I wonder how many derivatives Mr. "Talking His Book" Gross writes to manage his big pile o' bonds... you'd think he'd run out of counterparties.

OK -- fine on all his pontification... he is the "market" for all intents and purposes...

Most importantly I think Gross and his buddy Fink are TBTF... way too TBTF... lets get the new systemic risk board to "study" this one.

Anonymous said...

Nice market call, IA, really.