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Bill Gross: "Don't Buy - Sell"

Tyler Durden's picture




 

The bond king's daily tantric Tweet is out:

Gross: World awash in money. Fed buys 85 billion per month. BOJ 75 billion. ECB hints at neg interest rates. Don’t buy – sell risk assets.

So... is Bill buying what you are selling? Or is this reverse, reverse, reverse psychology and he is selling into his tweets, hoping for a lower bid to hit? Or just PR?

Inquiring minds want to know.

 

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Thu, 05/02/2013 - 11:00 | 3522435 Lost Wages
Lost Wages's picture

Maybe he started seeing Jim Sinclair's spiritual guru and now he speaks in mysteries.

Thu, 05/02/2013 - 11:15 | 3522512 ParkAveFlasher
ParkAveFlasher's picture

"Buying sold buys will get you the least greatest increase of decreases netting forward backward gains of losses."

Thu, 05/02/2013 - 11:18 | 3522525 Divided States ...
Divided States of America's picture

He is getting Grossly desperate these days.

Thu, 05/02/2013 - 11:40 | 3522618 Middle_Finger_Market
Middle_Finger_Market's picture

Don't sell in May. Buy, the money flow and craziness is really just getting started, who gives a fuck about the 'real' economy anyways ;p.

Thu, 05/02/2013 - 12:23 | 3522789 Kirk2NCC1701
Kirk2NCC1701's picture

We'll all be getting grossly desperate very soon.

Ron Paul + Jim Rogers on the government: "They'll use force and they'll use intimidation..."

Video clip with comments from both at Sovereign Man Offshore Workshop, at Hotel W, Santiago, Chile, a month ago:

http://www.youtube.com/watch?feature=player_embedded&v=CmqIerOV3EM

 

Ooops, did I front-run a future posting?


Thu, 05/02/2013 - 11:22 | 3522533 jbvtme
jbvtme's picture

what am i missing here?  the employment numbers look good so qe is ending.  and the market is up?  and the nasdaq...is there some technology coming online that i'm not aware of? and the dollar is screaming.

Thu, 05/02/2013 - 11:27 | 3522559 ShortTheUS
ShortTheUS's picture

This is a conflict of interest for Bond King Bill Gross.

 

Or should it be conflict of negative interest? Eh?

Thu, 05/02/2013 - 14:42 | 3523411 sgt_doom
sgt_doom's picture

Real unemployment numbers looking mighty bad!

Fed buys up "assets" which those in the know realize is junk paper (i.e., worthless credit derivatives) --- just a super Ponzi scam.

 

Thu, 05/02/2013 - 11:25 | 3522549 smlbizman
smlbizman's picture

does the autonation ceo have the same writers as the nar guy.....if i listen another day or 2...i will be convinced...gm is great and hitting on all cylindars...as a matter of fact the big 3's comeback is utterly amazing..... cant build houses fast enough....people breaking down the doors to buy our debt....and i swear ill tell you before i cum...

Thu, 05/02/2013 - 14:32 | 3523363 JuliaS
JuliaS's picture

Isn't that what Bernanke said at the last FOMC meeting: "The Fed is now standing ready to reduce QE, expand it or do nothing at all."

What a relief! I was getting worried there for a moment.

Thu, 05/02/2013 - 12:52 | 3522925 slaughterer
slaughterer's picture

The flirt with ES 1,600 continues.  Once it breaks, 1,630 easy.  Then, maybe short before end of May.  June-July come in all the earnings revisions and European craziness (before the August holiday).  Re-short gold at 1525 for another drop to a lower base (1200).

Thu, 05/02/2013 - 13:38 | 3523108 Middle_Finger_Market
Middle_Finger_Market's picture

Slaughterer do you tweet? 

Thu, 05/02/2013 - 15:01 | 3523475 JuliaS
JuliaS's picture

Gold's been acting as an underperforming commodity for quite some time now. Goes up and down with the oil. When it rises, it rises less, when it falls, it falls more. Silver like gold on steroids, %-wise.

Thu, 05/02/2013 - 11:01 | 3522437 Cognitive Dissonance
Cognitive Dissonance's picture

Poor Bill Gross. Either he has come down with a terminal case of guilty conscious or he is mad as a fiat hatter.

Thu, 05/02/2013 - 11:06 | 3522469 Dr. Engali
Dr. Engali's picture

I'll bet you in his next quarterly report we will see his total return fund loaded to the gills with risk assets.

Thu, 05/02/2013 - 11:08 | 3522476 LawsofPhysics
LawsofPhysics's picture

From below; "With only three, non-POMO days this month, don't worry Bill, we know when to sell.

Thu, 05/02/2013 - 11:12 | 3522495 gjp
gjp's picture

Not sure that's an either / or.  Surely a guilty conscience would drive anyone with Bill's history mad all on its own.

Thu, 05/02/2013 - 11:19 | 3522532 Cognitive Dissonance
Cognitive Dissonance's picture

Welcome to the insane asylum. You can check out, but you can never leave.

Thu, 05/02/2013 - 11:01 | 3522438 fonzannoon
fonzannoon's picture

Is a bank deposit a risk asset?

What isn't a "risk asset"?

Thu, 05/02/2013 - 11:04 | 3522453 css1971
css1971's picture

Anything but physical notes in your personal safe.

Thu, 05/02/2013 - 11:28 | 3522561 ParkAveFlasher
ParkAveFlasher's picture

doop

Thu, 05/02/2013 - 14:03 | 3523229 xtop23
xtop23's picture

Certainly better than numbers written on a bank statement but, physical notes are still a risk asset.

Thu, 05/02/2013 - 11:46 | 3522647 pupton
pupton's picture

Guns, grub and gold and silver.  Ammo too...

Thu, 05/02/2013 - 13:00 | 3522951 FEDbuster
FEDbuster's picture

It is interesting that guns, ammo and physical gold and silver are all in short supply.  Only food can still be had for a realtively reasonable price with no shortages here in the USSA.   Maybe now is the time to go long and deep on physical long term storage food???

Thu, 05/02/2013 - 13:30 | 3523082 PiratePawpaw
PiratePawpaw's picture

im already long the others and been wondering where to go next. You may be onto something with food. +1

Thu, 05/02/2013 - 11:56 | 3522712 Kirk2NCC1701
Kirk2NCC1701's picture

Stash you cash in a flash!  Take it home.  Your parents and ancestors did.  What's your problem, little sheep?

Thu, 05/02/2013 - 11:02 | 3522444 Dr. Engali
Dr. Engali's picture

When you liquidate your funds and buy all precious metals, maybe then I'll take your tweets seriously Bill. Otherwise you're just talking your book.

Thu, 05/02/2013 - 11:05 | 3522462 fonzannoon
fonzannoon's picture

Yeah no shit he was pitching corporate debt like it was going out of style yesterday. Granted that is probably better than some alternatives but he just can't help bring himself to state the truth....until the grand opening of his precious metals unit.

Thu, 05/02/2013 - 11:03 | 3522446 buzzsaw99
buzzsaw99's picture

risk assets = misnomer while bennie b is around. even more so when yellen takes the reins.

Thu, 05/02/2013 - 15:16 | 3523540 Widowmaker
Widowmaker's picture

FRAUD ACCOMPLISHED!

Thu, 05/02/2013 - 11:07 | 3522451 Mercury
Mercury's picture

...and go into cash on deposit or a MM fund?

Define your terms old sport.

Thu, 05/02/2013 - 11:05 | 3522457 Blopper
Blopper's picture

Very bad advice from Bill Gross.

I say buy and more buy.

Thu, 05/02/2013 - 11:06 | 3522465 the grateful un...
the grateful unemployed's picture

Gross is the guy who said, watch waht the Fed is doing, and do that

Thu, 05/02/2013 - 14:25 | 3523322 rubearish10
rubearish10's picture

FED could be buying or selling, no?

Thu, 05/02/2013 - 11:05 | 3522458 Haager
Haager's picture

Stocks kind of up, bonds fying, commodities uneven. This is a sell-sign, because it's almost only CB-money on the buyers-side.

Thu, 05/02/2013 - 11:06 | 3522464 eddiebe
eddiebe's picture

With criminals running all shows, everything is risk.

Thu, 05/02/2013 - 11:09 | 3522466 EclecticParrot
EclecticParrot's picture

He may often have valid points, but when Bill Gross becomes Bill Net, his opinions don't seem to be worth quite as much.

(It seems part of his Tweet may have been cut off, it's "Don't Buy -- Sell risk assets to me.")

Thu, 05/02/2013 - 11:06 | 3522470 LawsofPhysics
LawsofPhysics's picture

Only three, non-POMO days this month.  don't worry Bill, we know when to sell.

Thu, 05/02/2013 - 11:08 | 3522475 css1971
css1971's picture

He's right mind you. Only cash is cheap. Everything else is expensive. So from a trading perspective you should be selling everything to hold cash in readiness of the next crash.

The 50 trillion dollar question though is how long can it continue.

Thu, 05/02/2013 - 11:09 | 3522486 LawsofPhysics
LawsofPhysics's picture

"The 50 trillion dollar question though is how long can it continue." - the not-so-simple answer is as long as the non-productive elements of society can continue to steal from the productive elements.  Something about supply lines of essential commodities comes to mind as well.

Thu, 05/02/2013 - 11:13 | 3522496 fonzannoon
fonzannoon's picture

People are going to learn there is a huge difference between "cash" and "money market" at some point.

Thu, 05/02/2013 - 11:18 | 3522526 LawsofPhysics
LawsofPhysics's picture

Humanity is going to re-learn a lot of things.  The real definitions of value, compensation, and counterparty risk are among the coming lessons.

Thu, 05/02/2013 - 11:34 | 3522587 NoDebt
NoDebt's picture

Why would that be?  Nobody learned it in '08.  I'm hearing "house flipping scheme" commrecials on the radio again.  We're just going to do it over and over and over again.

Not to worry, Bill.  If $85B isn't enough they'll do $160B and then $480B and pretty soon the "Trillion Dollar Coin" idea will come back and we'll do that.  Then they'll come up with more stupid ideas and do those.  Inflation will kick in where even the most aggressive data manipulation isn't enough to hide it.  Still they will print MOAR.  They will never let the bid drop.

Thu, 05/02/2013 - 14:14 | 3523272 mind_imminst
mind_imminst's picture

Right on Nodebt. It seems to me that the printing is just getting revved up. I don't think we are at the blow-off top yet. Risk assets should continue to climb in the current environment

Thu, 05/02/2013 - 15:39 | 3523577 Widowmaker
Widowmaker's picture

We're not talking about a market, or anything that resembles one.

This is about crisis management and the perception of power.

Thu, 05/02/2013 - 11:34 | 3522589 Herd Redirectio...
Herd Redirection Committee's picture

Lets try to make it simple for people.

The first thing (IMO) people need to learn is:  THE GOVERNMENT IS NOT LOOKING OUT FOR YOU.

Both parties have been compromised, they are mere window dressing.

If we can get people to realize just that little bit of truth then we are getting somewhere.

Thu, 05/02/2013 - 11:09 | 3522482 Confundido
Confundido's picture

The question goes even deeper...inquiring minds also want to know what a risk asset is today too....or... What is a risk-free asset?

Thu, 05/02/2013 - 11:15 | 3522508 Spielbank
Spielbank's picture

Forget about risk free assets,....you`r always a market participant even with a bank deposit...But in Economics there is still this term risk free interest really common sense, also for mathematical model for investments....

Thu, 05/02/2013 - 11:09 | 3522484 Devotional
Devotional's picture

can we sell Bill Gross?

Thu, 05/02/2013 - 11:15 | 3522510 Unprepared
Unprepared's picture

That will cost you a gross bill.

Thu, 05/02/2013 - 11:14 | 3522485 Edward Fiatski
Edward Fiatski's picture

Well, he did get it right with the EUR, whether talking his book or not is irrelevant.

5th leg down is in progress. ;-)

Thu, 05/02/2013 - 11:13 | 3522497 Spielbank
Spielbank's picture

Looking forward to the next PIMCO Report :-)....maybe he will stack some high yield which are currently pretty hot in pricing!

Thu, 05/02/2013 - 11:14 | 3522503 PontifexMaximus
PontifexMaximus's picture

should be good for at least new highs

Thu, 05/02/2013 - 11:17 | 3522522 Ness.
Ness.'s picture

Good call - timely too.

Thu, 05/02/2013 - 11:14 | 3522506 kito
kito's picture

bill wants you all to run to the bosom of his bond de jour...................

Thu, 05/02/2013 - 11:17 | 3522521 fonzannoon
fonzannoon's picture

Dude.....(picturing that ugly mofo with bosoms)

UGH

Thu, 05/02/2013 - 11:46 | 3522651 youngman
youngman's picture

Did he go to Duke University...they will pay for the sex change now.....

Thu, 05/02/2013 - 11:15 | 3522509 The Dancer
The Dancer's picture

And of course, that's the continueing dilemma.....sanity vs. insanity...when one is not on the "inside" one is only guessing when to make a move...we are puppets on their FED string...mere marionette dolls dangling in the wind....

Thu, 05/02/2013 - 11:15 | 3522511 WhiteNight123129
WhiteNight123129's picture

Tobacco Shares bitchez

 

Thu, 05/02/2013 - 11:17 | 3522519 the grateful un...
the grateful unemployed's picture

wacky-tobaccy is the cash crop

Thu, 05/02/2013 - 11:15 | 3522514 the grateful un...
the grateful unemployed's picture

too bad none of that money gets to consumers who spend it and make the economy move. when the 1% gets filthy rich they have more than they need, and then they park it in annuities, (which is the real savings problem, not the widows and orphans Snidely Bernanke wants to foreclose on) the real problem is that even with a $100 bill in your hand, what can you buy? people with items of value aren't selling, and when they do sell it is in a pawn shop, which speaks volumes about desperation (and boredom with the item) more than need.

Thu, 05/02/2013 - 11:15 | 3522517 beavertails
beavertails's picture

http://www.zerohedge.com/news/2013-04-23/pimcos-bill-gross-advice-two-words-sell-euros

Reminder of Bill Gross Recent BS.  Tyler, do we do the opposite?

 

Thu, 05/02/2013 - 11:21 | 3522540 wcvarones
wcvarones's picture

Why the F would I sell when Zimbabwe Stan and other central banksters are printing money out of thin air to buy equities?

Thu, 05/02/2013 - 11:41 | 3522607 Quinvarius
Quinvarius's picture

As these companies go bankrupt in this environment, the points will come right off the DOW anyway. 

Besides.  Take one look at the mining index.  It leads.

Thu, 05/02/2013 - 11:24 | 3522548 W T F II
W T F II's picture

As soon as he said it, we RALLIED...!!

Thu, 05/02/2013 - 11:29 | 3522565 WhiteNight123129
WhiteNight123129's picture

WHat is risk asset?

Treasuries.

even worse, those are return free risk over the long term.

 

 

Thu, 05/02/2013 - 11:32 | 3522581 CDNX fan
CDNX fan's picture

Wild Willie is a already a billionaire 1%-er so he doesn't need to "game" his tweets...

Thu, 05/02/2013 - 11:33 | 3522585 thismarketisrigged
thismarketisrigged's picture

this market is too funny.

 

we are going to wipe away yesterdays losses before noon today.

 

who the fuck keeps buying google? the stock is so fucking overbought, it did not even have a great quarter, yet even at these absurd prices,people ( i guess algos) continue to buy it up.

 

i want to puke

Thu, 05/02/2013 - 11:52 | 3522680 Lost Wages
Lost Wages's picture

They probably believe, as Reggie Middleton does, that Google Glass will be the new iPhone. And they are probably right.

Thu, 05/02/2013 - 11:33 | 3522586 haskelslocal
haskelslocal's picture

Gross shows his hand with this one leaving everyone guessing who should buy and who should sell. Bernanke? You? Him? His mother?

Chud.

Thu, 05/02/2013 - 11:44 | 3522637 venturen
venturen's picture

INFLATION, INFLATION, INFLATION.... The FED wants it, corrupt bankers want it, Washington wants it....

Thu, 05/02/2013 - 11:54 | 3522699 Lost Wages
Lost Wages's picture

Probably better to get a TIPS fund in your 401K rather than Bill's total return fund. Everyone is expecting a deflationary collapse instead of inflation now, so will probably get the opposite.

Thu, 05/02/2013 - 12:06 | 3522748 the grateful un...
the grateful unemployed's picture

while the bonds are selling at auction at a negative yield? the Fed buys its own stuff, do you like paying them a premium? when they haircut your bank account i guess you'll be ready. disclaimer, bought TIPs several years ago, when they were actually discounted to par on occassion, but not in this environment. nothing but PM, and the premium in that is getting out of hand quickly

Thu, 05/02/2013 - 11:48 | 3522664 youngman
youngman's picture

We know the guys that have the inside information when the fed finally does decide to slow down or stop...will win this game...they will get out before the rest of us know anything....

Thu, 05/02/2013 - 12:01 | 3522736 Kirk2NCC1701
Kirk2NCC1701's picture

Is Gross trying to expand his client base with with the "Gloom, Doom and Boom" market segment?

Thu, 05/02/2013 - 12:11 | 3522751 sbenard
sbenard's picture

Apparently, from the bullishness of the comments, even here at ZH, conventional wisdom rules.

My volume indicator, a proprietary one that is the best leading indicator I've ever seen, is bearish. But prices are bullish. A divergence means I stay OUT of this market! I've learned to trade only when indicators all point the same direction.

This stock market is the most "bubbly", to quote Mr. Gross from a few days ago, that I've ever seen it.

"While the attention of investors is focused on the short-run market outlook in what is already a mature bull market advance, it’s crucial to understand the endgame to this overvalued, overbought, overbullish, overleveraged episode of market history. That endgame will be forced liquidation, as declining prices force leveraged investors to sell – voluntarily or otherwise." Dr. John Hussman

“On Wall Street, urgent stupidity has one terminal symptom, and it is the belief that money is free. Investors have turned the market into the carnival, where everybody ‘knows’ that the new rides are the good rides, where the carnival barkers seem to hand out free money just for showing up. Unfortunately, this business is not that kind – it has always been true that in every pyramid, in every easy-money sure-thing, the first ones to get out are the only ones to get out.” Dr. John Hussman

Thu, 05/02/2013 - 13:26 | 3523057 andrewp111
andrewp111's picture

Whether it pops a year from now or 2 or 3, when this sucker goes down, the circuit breakers will be hit milliseconds after the market opens. It will go down so fast only the HFT people will be able to sell.

 

But it will still be cool to see the DOW at 36000 before it pops!

Thu, 05/02/2013 - 12:14 | 3522773 sbenard
sbenard's picture

This market has apparently forgotten that employment indicators are among the MOST LAGGING of all! Another severely lagging indicator is one known as the STOCK MARKET! Wall St never "gets it" until its too late, and central bankers are creating more moral hazard and risk disregard than ever. That only spells disaster!

Thu, 05/02/2013 - 12:21 | 3522796 mendigo
mendigo's picture

But stocks are rising - there is money to be made by riding the momo wave. The CB's and the MSM are promoting the momo wave - I can see why the MSM does it, but am confused about why the FED would play that game on the assumption that they are actually trying to help if misguided. As far as I can tell the stock market misdirects resources into financial engineering as opposed to productive products and services - we should all be investment bankers, right? Thats leaving aside that it is a hopelessly corrupt game for insiders.

One day, stocks will fall rapidly (as they have done repeatedly now) - maybe a 90% probabiltiy within the next 3 years. Will that mean Gross was right?

There are inifinately many uncertainties and there are two obverse possibilties  - FED looses control and stock go thru the roof with toilet paper money or FED fails to catch the baby and stocks crash before it knows what happened. In the latter case, one thing is almost guaranteed - when it happens GS and JPM will have liquidated shortly before and probably will aid the collapse and will be waiting to BTFD. 

Thu, 05/02/2013 - 12:36 | 3522848 Monedas
Monedas's picture

Trickle Down Obama Style .... government workers and entitlement queens .... buy things from those who make money the old fashioned way .... they work for it !

Thu, 05/02/2013 - 12:45 | 3522896 TNTARG
TNTARG's picture

FIESTA!

Thu, 05/02/2013 - 13:59 | 3523212 polo007
polo007's picture

According to Canaccord Genuity:

http://fs1.hidemyass.com/download/oiJmn/l0dnjl73ag6ihmioaubg7u3a46

HURRY UP AND WAIT

We have been anticipating a correction over recent weeks, and we see no reason to change that view. Our reasons for expecting a pause in the upside remain tactical in nature because the fundamentals that have driven the rally since the 2009 low continue to be in place. We expect a correction because (1) the equity market is near-term overbought and somewhat extended above its 200-day moving average, and (2) the current move higher is the second longest without a 5% correction since the 2009 low. A 5% correction from the recent peak of would bring the SPX very close to our 1500 near-term correction target. As you all know, we believe the intermediate-term fundamental, historical and tactical framework command buying the equity market on any correction – especially one that is +/- 5%. Our 2013 target remains 1760, which assumes a 16 multiple on $110 EPS for the SPX.

Definition of insanity. Before we convince you there could be a 5% correction, we need to convince you the backdrop remains so favorable for domestic equities that any weakness should be used as an opportunity to add exposure. Remember that corrections are only natural, normal and healthy until they actually happen. The definition of insanity is doing the same thing over and over, but expecting a different result. The fundamental drivers of the equity market have not changed throughout this entire cycle, yet many continue to find reasons they won’t work. Those favorable drivers have been:

1. Low core inflation (Figure 1),

2. Historically accommodative monetary policy as seen in the real Fed Funds rate (Figure 2),

3. Improving money availability and steep yield curve (Figure 3),

4. Slow but positive economic activity,

5. Directionally positive EPS and upward trend in valuation levels.

Investing is not an academic study. Is it a cause for concern that the Fed is artificially keeping rates lower than where they should be? Not based on the past four years. Continued deceleration in core inflation is giving the Fed cover to keep rates abnormally low, which improves the availability of money that leads to positive growth for the economy and therefore corporate America. The very smart-sounding counter to these factors are weak domestic economic and employment growth, a meaningful slowdown in growth in China, and the recessionary environment in the Eurozone. These factors are real, and over the past few years they have caused corrections, but have not been the ultimate driver of stocks – the guys printing the money have. We try not to get wrapped up in whether that is right or wrong because it just is what it is – practically positive for domestic equities.

Thu, 05/02/2013 - 14:12 | 3523262 BeetleBailey
BeetleBailey's picture

OK....I did...I sold some of your PTTDX motherfucker.....how's that...and I took a profit for my clients too....HA!

Thu, 05/02/2013 - 14:27 | 3523335 rubearish10
rubearish10's picture

The market might be thinking employement upside surprise tomorrow in payrolls but higher rate, which means MOAR FED backstop!

Thu, 05/02/2013 - 15:21 | 3523573 pcrs
pcrs's picture

Strange advice, go to cash because they are producing tons of it. ????

Thu, 05/02/2013 - 15:36 | 3523650 polo007
polo007's picture

http://research.stlouisfed.org/fred2/series/GFDEGDQ188S

Federal Debt: Total Public Debt as Percent of Gross Domestic Product (GFDEGDQ188S)

2012:Q4: 103.58438 Percent of GDP

Quarterly, Seasonally Adjusted

Updated: 2013-03-29 10:01 AM CDT

Thu, 05/02/2013 - 17:44 | 3524146 Ih8u
Ih8u's picture

It would be super cool to have bill gross sent to the taxidermist and stuffed and then put him in the lobby of your bond short hedge fund office.

 

Like Im so fucking rich I had bill gross stuffed and mounted. Then his skin will be in some storage unit in 200 years

Fri, 05/03/2013 - 11:59 | 3527226 resurger
resurger's picture

Fuck him and El Erian

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