“PIMCO (biggest bond fund) Dumping All Treasuries, Bringing “Government Related” Holdings To Zero”
I disagree with Durden on his assumption that “Bill Gross is now convinced there will be no QE3 at all.” Treasury bonds (especially long term) have been a no-no for some time, according to many other advisors and managers. If there is another quantitative easing move, bonds will still be risky. Same with mortgage backed securities, wherever QE3 would go.
We might take a look at where much money is likely going in the longer term: net energy exporters advancing. ...and where it is leaving: declining net energy importers with the worst sovereign debt problems.
These days you do have to ask yourself if this latest news is a headfake, or the real deal.
Here’s MISH’s take:
Pimco dumps; Six reasons to fade Bill Gross http://globaleconomicanalysis.blogspot.com/2011/03/pimco-dumps-all-remaining-treasuries-in.html
For those who don’t know, MISH is a deflationist, but he also likes gold. He got the 2008 crash right, but the ramping from March 2009, wrong.