Bill Gross

Frontrunning: July 27

  • Democrat Clinton makes history with U.S. presidential nomination (Reuters)
  • Democrats Achieve an Uneasy Détente at Convention (WSJ)
  • Obama Economy Left Behind the Backers That Clinton Needs to Win (BBG)
  • European stocks rise, Asia lifted by Japan stimulus (Reuters)
  • PM Abe's plan for $265 billion stimulus puts pressure on BOJ to ease (Reuters)

World's Top Investors "Ring Alarm" At All Time Market Highs

The big rally in stocks and bonds has some of the world’s top money managers putting up warning signs. Laurence Fink and Howard Marks joined the likes of Bill Gross and Jeffrey Gundlach cautioning that buyers may be getting ahead of themselves... by about 25%.

Weekend Reading: Central Banks Save The World

For now, Central Banks have seemingly accomplished the rescue of the entire global financial system by one again lofting asset prices higher. The problem, however, remains the underlying fundamental issues of weak earnings, slowing economic growth and a collapsing Chinese economy. There is a point, unknown to anyone currently, where the failure of monetary policy will occur.

European Stocks Storm Higher As Bank Fears Subside; US Futures Flat

After yesterday's afternoon surge in US stocks, facilitated by the "uncertain" Fed's FOMC Minutes, today the rest of global market are playing catch up with European stocks rebounding from one week lows, snapping the longest losing streak in three weeks, as well as Asia where most stock markets climbed, led by gains among energy producers as crude prices advanced, while a stronger yen weighed on Japanese shares.

Bill Gross Says Yellen "Worships False Idols" So "Worry About The Return Of Your Money, Not On It"

"Investors should not hope unrealistically for deficit spending any time soon. To me, that means at best, a ceiling on risk asset prices (stocks, high yield bonds, private equity, real estate) and at worst, minus signs at year's end that force investors to abandon hope for future returns compared to historic examples. Worry for now about the return "of" your money, not the return "on" it."

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.