Posted on 11/16/2016 1:06:27 PM PST by Ernest_at_the_Beach
"SUFFER". "ANGRY". "RACIST". "HATE". "HURT".
(feel free to add your own.)
PIMCO Dumps All Remaining Treasuries in Total Return Fund; Six Reasons to Fade Bill Gross
Global Economic Trend Analysis ^ | 03/11/2011 | Mike Shedlock
Posted on 3/11/2011, 6:39:48 AM by SeekAndFind
Pimco’s Bill Gross has been dumping US government debt in favor of other alternatives including emerging-market opportunities. Looking ahead, I think it’s more likely to be a bullish setup for treasuries than not.
First, please consider the news.
Bloomberg reports Pimco’s Gross Eliminates Government Debt From Total Return Fund
Bill Gross, who runs the world’s biggest bond fund at Pacific Investment Management Co., eliminated government-related debt from his flagship fund last month as the U.S. projected record budget deficits.
Pimco’s $237 billion Total Return Fund last held zero government-related debt in January 2009. Gross had cut the holdings to 12 percent of assets in January, according to the Newport Beach, California-based company’s website. The fund’s net cash-and-equivalent position surged from 5 percent to 23 percent in February, the highest since May 2008.
Yields on Treasuries may be too low to sustain demand for U.S. government debt as the Federal Reserve approaches the end of its second round of quantitative easing, Gross wrote in a monthly investment outlook posted on Pimco’s website on March 2. Gross mentioned that Pimco may be a buyer of Treasuries if yields rise to attractive levels.
Treasury yields are about 150 basis points too low when viewed on a historical context and when compared with expected nominal gross domestic product growth of 5 percent, he wrote in the commentary. The Fed is scheduled to complete purchases of $600 billion of Treasuries in June.
Gross in his February commentary urged investors to reduce holdings of Treasuries and U.K. gilts and buy higher-returning securities such as debt from emerging-market nations. “Old- fashioned gilts and Treasury bonds may need to be ‘exorcised’ from model portfolios and replaced with more attractive alternatives both from a risk and a reward standpoint,” Gross wrote.
Gross last month increased holdings of emerging-market debt to 10 percent, the highest since October, from 9 percent in January. He cut holdings of mortgage securities to 34 percent from 42 percent in January
http://freerepublic.com/focus/f-bloggers/2687172/posts
Excellent post and observations of a bi-polar, hypocritical media and bi-partisan two-party scam Trump is about to smash into pieces.
Gross already lost his shirt by short-selling long bonds while interest rates fell to record-low levels. His arrogance led him to forget the first rule of bond investments: “Don’t fight the Fed.”
Another pro Obama, Market expert has had problems since outing himself.
Warren Buffett faces worst year on stock market since 2009
https://www.ft.com/content/6fec0040-ae4b-11e5-993b-c425a3d2b65a
Dec 29, 2015 - Investment guru Warren Buffett is headed for his worst year relative to the ... “Over time, stock prices and intrinsic value almost invariably converge,” he wrote in February. .... Buffett’s decline began when he became a big Obama supporter!
Marketwatch is a far left wing phony site.
Its owned by a huge DNC
donor and its used to peddle his far left agenda .
Believe nothing from this site .
its a joke!
It has been that way since Market Watch jumped in Obama’s hot tub.
Who is the bid DNC donor?
Janus Capital has underperformed its peers since Gross joined the firm.
Thanks for the info!
Hmmmm, I’ve never heard benefits described with the word “brunt” till now.
So he’s a static scorer. What a maroon. Thinks tax policy rates and rates have no effect on go / no go decisions on ventures.
They are already blaming the .5% mortgage rate hike on Trump, when it’s been in the planning stages for MONTHS.
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