Bill Gross

Gross Echoes Gundlach, Says Trump Rally Is Misguided: "Move To Cash"

On the heels of Jeff Gundlach's "there's going to be a buyer's remorse period" warnings yesterday, the other 'bond king' has raised similar fears that the Trump rally is overdone (as are the prospects for growth behind it). Putting aside the book-talking as their bond portfolios suffer, Gross echoes Gundlach's "Trump's not the wizard of oz" comments, noting that the next president faces serious structural headwinds and warns investors "should move to cash," as any fiscal stimulus gains will be temporary at best.

Weekend Reading: The Trump Effect

It has been interesting to watch market participants swing from “Trump The Terrible” to “Trump The Great” in relation to the markets and economy and he isn’t even in office yet. But while Trump certainly has an extensive list of actions for his first 100-days, there are many headwinds to actual policy implementation and ultimately their success.

An "Amazed" Bill Gross Slams Trump: "His Tenure Will Be Damaging"

"I am amazed, at what American voters have done to themselves: in voting to deny Hillary Clinton the Henhouse, they "unwittingly" (lack of wit), let Donald Trump sneak in the side door. His tenure will be a short four years but is likely to be a damaging one for jobless and low-wage American voters."

"This Cannot End Well" Bill Gross Warns

"Central bankers have fostered a casino like atmosphere where savers/investors are presented with a Hobson's Choice, or perhaps a more damaging Sophie's Choice of participating (or not) in markets previously beyond prior imagination. Investors/savers are now scrappin' like mongrel dogs for tidbits of return at the zero bound. This cannot end well."

Just 3 Things

Record levels denote the point that previously marked the end of a cycle, not the beginning of a new one. This point is often missed by the mainstream media. Record highs of anything, whether it is economic, fundamental or financial data, are warnings signs of late stage events.

The Banquet Of Consequences Is Being Served (By The Central Banking Cartel)

Last week, the Federal Reserve decided to keep US interest rates unchanged, marking its 96th month of life at the zero bound. Apparently, for all of its "data dependence", the Fed feels the economy could still benefit from *just* a little more of its ZIRP happy juice. But as anyone with a little common sense will tell you, More is not always better. It's quite possible to have too much of a good thing. And in its pursuit to kick the can for a little longer, the Fed has crossed a dangerous line.

Global Central Bank-Driven Stock Rally Fizzles; Crude Rebounds On Saudi Oil Production Cut Report

Until minutes ago, this week's rebound in global equities appeared to be running out of steam as oil retreated from a two-week high and a dollar slide ended.  However, as noted just around 6am, Reuters reported, citing as it usually does various "anonymous sources", that in a radical departure from its long-held policy of not cutting production, Saudi Arabia was prepared to cut production on condition that Iran freezes output, which led to an instant spike in crude.

Frontrunning: September 15

  • Global stocks struggle for footing after bond slip (Reuters)
  • Mobileye says Tesla was 'pushing the envelope in terms of safety' (Reuters)
  • Donald Trump is a problem for the whole world, EU's Schulz says (Reuters)
  • Stuck on Ship, One Gloomy Hanjin Crew Waits to Learn Its Fate (WSJ)
  • U.K. Approves EDF’s £18 Billion Hinkley Point Nuclear Project (BBG)

Why The Fed Is "A Terrible Parent"

"My goal is for my children to always be happy, to never experience pain, or sadness, or disappointment. To always get what they want, and to never have to hear the word ‘No.’" ...But spoiled kids take greater and greater risks, do dumber and dumber things, because there are never any consequences for their actions.