It seems odd to me, too, although I am no trader. But just on the face of it, it seems someone's not as concerned about dollar devaluation as I am.
Me too. Moving it to precious metals - sure, I could understand that.
Canned goods ... sure (he could corner the Spam market I suppose).
But dollars? I can understand the fleeing Government Bonds part - but moving it to dollars I don't understand... Maybe 'cash' meant something else (e.g., Swiss Francs; etc)...
seems to be that tradin bonds for dollars aint real bright unless youre sure that the next wave from helicopter ben has been stifled...
It seems odd to me, too, although I am no trader. But just on the face of it, it seems someone’s not as concerned about dollar devaluation as I am.
How Gross would protect his PIMCO investors from a dollar melt isn't obvious. He's not running a precious-metals fund, so he would probably run to tangible-asset-rich equities if he thought the dollar was at risk, and equities with lots of overseas income, like Coca-Cola and MacDonald's.
He's running away from debt, not dollars, suggesting that he's expecting a big interest-rate shock, i.e. a cessation of QE.
The threat is to interest rates, not the dollar. Or so his actions would suggest.