This page has been archived and commenting is disabled.
Bill Gross Chastizes The Children Of The Bull Market, Excludes Itself
The fourth branch of government provides its uninspired precepts for approaching strategic asset allocation:
As of now, PIMCO observes that the highest probabilities favor the following strategic conclusions:
- Global policy rates will remain low for extended periods of time.
- The extent and duration of quantitative easing, term financing and fiscal stimulation efforts are keys to future investment returns across a multitude of asset categories, both domestically and globally.
- Investors should continue to anticipate and, if necessary, shake hands with government policies, utilizing leverage and/or guarantees to their benefit.
- Asia and Asian-connected economies (Australia, Brazil) will dominate future global growth.
- The dollar is vulnerable on a long-term basis.
So now that QE is the verge of ending, at least in treasuries, yet the Fed is a ways away from actually enforcing a restrictive money policy you can i) do what PIMCO does, which has so far been very good at "shaking hands" with not just government policies but the government itself, and has thus benefitted handsomely from the government's embracing of (un)free market capitalist socialism or ii) anticipate the market shock at the point where equities start discounting in earnest the government's many trillions of crutches starting to come off.
In summary, the only insightful thing in the most recent letter is the righteous beatdown of pro-cyclical permabull Barton Biggs.
»
- 4920 reads
- Printer-friendly version
- Send to friend
- advertisements -
Rosie will be guest host on Bloomberg TV/radio Friday AM
Flack! But that's ok...any news on Rosie is welcomed. And much better than that BBC jerk who buried his announcement 100 comments down on a Friday night.
thanks for the tip !
Bill Gross tells us all that it pays well to sleep with the big dogs, fleas and all.
Or to re-frame this as a Jeopardy question, why does a dog lick his balls?
Hahahaha
Once again: How does one spell PIMCO? W-H-O-R-E-S. We wonder who will be next? Oh, we know, Maybe Democratic Congressman, Pete Stark.
PIMCO has so many assets under management that they can't help but move the market when they trade. Any position they might take will be definition make waves.
At this point, the only move that makes any sense is to bed down with the real market movers, the FED et al, and take advantage of the other's waves (that you are being warned about ...... er sorry... consulted about in advance) to make your profits.
In other words, with the help of some friends in high places and the shrewed placement of a gun to their own temple (I'll kill the hostage if anyone does anything stupid) they have turned a market disadvantage into the supreme advantage.
It's the ultimate hole-in-one for Gross and PIMCO. And this time Gross has witnesses.
PIMCO doesn't move the markets. They manage
maybe 1 - 3 % of all bonds in the markets. And
don't forget the derivative shadow banking system,
that can move rates faster than any big bond fund.
But sitting on so much debt, ahead of the debt
flow we will see next year, Bill Gross will probably
regret having supported the actual FED policy.
Also, Paul McCulley, his totally patriotic partner,
who agrees on everything Helicopter Ben does,
will have a rude awakening in 2010.
One day in the near future, bonds will take the
same course as equities did in in 2008. Then
I have to agree, PIMCO could move the markets,
running for the exit doors.
Shake hands with the gov't? NO WAY... After they've consistently screwed share & bond holders alike. What happens to the "hand shakers" if the gov't goes BK? Good Luck Billy boy "bond king." You may find your recommendations most unprofitable someday as you wake up with a horse's head in your bed & your shareholders find that you've "manured" them.
The development of Asia is likely to destroy capitalism - much as the development of a powerful middle class in the United States destroyed profit margins starting in the 70's, until the advent of neo-liberalism and globalization. Surplus labor in China was close to its peak in China at the beginning of this crash as it is.
Mr Gross is acting prudent at a time when sooooo many people have turned into uber bulls...
(un)free market capitalist socialism
WTF? So, one minute the ZH stories wail and moan about the SEC's lack of enforcement, the next minute, markets aren't free enough?
The *entire* point behind the SEC and whatever other regulatory agencies doing nothing for the past +/- 20 years was to create as free a market as possible.
Now, I am not saying what the Treasury/Fed/Administration is doing right now is right, but you had your shot at unfettered capitalism and these are the consequences.
You can't have your cake and eat it too. Or maybe you just pretend. There's been a whole lot of pretending lately.
Grow the f*ck up.
free and cheat are not synonims
I guess
Pete Stark for Pres. 50tn deficit!