Bill Gross

The Fed's Rate Hike Plans Are Now "In Tatters" - What Wall Street Thinks

Any “faint prospect” of a Fed July rate increase has entirely vanished, ING economist Rob Carnell wrote in note adding that the longstanding ING call for Sept. hike looks to be “hanging in tatters.”  Here are more comments, courtesy of Bloomberg, from Wall Steet's so-called experts, none of whom predicted the actual a Brexit outcome, about U.S. monetary policy outlook following the outcome of the U.K. referendum.

Tyranny Of The PhDs

Sad to say, you haven’t seen nothin’ yet. The world is drifting into financial entropy, and it is going to get steadily worse. That’s because the emerging stock market slump isn’t just another cyclical correction; it’s the opening phase of the end-game. That is, the end game of the PhD Tyranny.

Big Names Are Bailing

The list of heavy hitters who are saying bad things about this world and its financial markets - while acting aggressively on their pessimism - is growing to alarming proportions.

Weekend Reading: Intelligent Asininity

The current market process certainly seems far more similar to the 60-70’s than most people would like to admit. The only question is how long will it take for the “intelligent asininity” of the bullish proletariat to finally wear thin.

Global Stocks Sharply Lower As Bond Yields Hit New Record Lows; Oil Slides Below $50

Global stocks, U.S. index futures are sharply lower pressured by fears of another day of record low bond yields, as investors start to worry about numerous risk catalysts in the coming weeks, from the Brexit vote to Fed meeting. The Dollar spot index rose for the second day in a row, pushing commodities lower for their first two-day decline since May 24, while WTI has dipped back under $50.

German Bund Yields Crash To April 2015 "Short Of A Lifetime" Record Lows

In April 2015, as Bund yields crashed towards zero, bond gurus Bill Gross and Jeff Gundlach went public with their "short of a lifetime" positions which spiked german rates drastically higher. Since the peak of that bounce in May 2015, bund yields have accelerated lower and today crashed back towards those record lows at just 6.5bps (for 10Y!). The entire bund yield curve is now below zero out to over 9 years, which as we noted earlier, leaves more than $10 trillion of global bonds now negative-yielding.

Bill Gross Explains Why He Is Now Shorting Credit

"For over 40 years, asset returns and alpha generation from penthouse investment managers have been materially aided by declines in interest rates, trade globalization, and an enormous expansion of credit – that is debt. Those trends are coming to an end.... A repeat performance is not only unlikely, it  is impossible unless you are a friend of Elon Musk and you’ve got the gumption to blast off  for Mars. Planet Earth does not offer such opportunities."