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PIMCO On The Euro, Greece, And Preferred Investments In Brazil, Poland And Russia
Pimco's Michael Gomez, who recently shared the floor with Hugh Hendry, Marc Faber and Nassim Taleb, and who was likely the key voice in Pimco's recent decision to accumulate German Bunds, shares insights on the euro, Greece and new investment opportunities. Based on this Bloomberg TV interview, it is likely that PIMCO will soon be accumulating a variety of Polish and Brazilian sovereign bonds, as well as corporate bonds in Brazil, Mexico and Russia, with an emphasis on the first. With tens of billions in dry powder, PIMCO will likely have an increasingly risky EM exposure as it departs from its traditional MBS/UST portfolio.
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Grrrrrreaaaaat. PIMCO is the least risky choice in my 401K.
401k?
One of my very close friends did a breakdown of tax vs dollar value versus future tax rate hikes and other factors and decided to liquidate their 401k last week. It is early in the year, so with cash in hand... plus they said it is better than possible risk keeping funds elsewhere during high volatility and possible lockout as can be done with money market. There are other factors they discussed with me yet in the end it made sense to liquidate their 401k and get it out of the hands of others (counterparty risk).
Of course everyone has their own strategy so DYOD of course.
Employer matches 100% on the amount I contribute. I just started contributing. You can't liquidate a 401K until you quit your job or claim a hardship.
Simple algebra says I can loose 44.44% in the market (or tax increase) then take the 10% early withdraw penalty and still break even.
In other words, I agree with you but I contribute only because they force me to with that 100% match.
"Money market" isn't one of your choices?
I'd feel more comfortable with Brazilian bonds
than US Bonds.
Too late to say that, just take a look at the yield curve on brazilian domestic bonds...
so if PIMCO is accumulating (kinda strong) emerging gov. and corporate bonds, I should too?
Poland is indeed a (pretty) well run country in general, with one of the best economies East of Germany.
Probably not a bad idea to allocate some away to Currency Bonds because it's not a yield play anymore, it's the total return on the weak USD play. You know, PIMCO is developing an equity product because they look to achieve perhaps 2-7% annual returns there. One reason they're attracted to those returns in equities is that FI product is dead in the water, meaning flat perf!
Yikes. We're learning towards the inflationistas winning.
Probably not a bad idea to allocate some away to Currency Bonds because it's not a yield play anymore, it's the total return on the weak USD play. You know, PIMCO is developing an equity product because they look to achieve perhaps 2-7% annual returns there. One reason they're attracted to those returns in equities is that FI product is dead in the water, meaning flat perf!
hat tip to: http://www.iamned.com The crisis will get much worse
Die in a fire, spammer.
pimco ought to love LT treasury yields lately..
Kinda interesting when currencies like the Brazilian Real yield higher than Treasuries - yet Brazil discourages foreign investment!
Sounds like a FX play.
Pimpco blowing up would make my knees weak.
look at russian market last year... cheap market, high profit...
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