Bill Gross

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."

Can You Solve This Riddle?

If we are going to simply print money and hand it out with no expectation or means to pay it back, why would we not print enough to make everyone wealthy? Socialism is not about equality, quite the opposite. If it were, The ECB would be discussing limitless debit cards paid for by the Central Banks. Socialism is a mechanism to subsidize profits and cement control of the masses.

Even Bill Gross Misunderstands "Free-Market Capitalism"

We have deviated so far from free markets at this point that even the top financial minds no longer have any understanding of what is meant by capitalism. It must be true, for anyone who understands capitalism could never have published such a letter. The logic in Mr. Gross’s argument is beyond invalid, in fact, it is so ludicrous it borders on insane. We mean this quite literally...

Peak Economy - The Failure Of Fed Policy Exposed In 5 Painful P&G Charts

What is taking place in the macro economy is a true demand death spiral and this can be seen very clearly by using Proctor & Gamble’s microeconomic context as a representative model. If one steps back and simply looks at the accuracy of the world’s prominent PhD economists and market pros’ predictions over the past 7 years one can’t help but shake one’s head. And we believe investors have become wise to their ignorance.  We’ve seen a record 15 consecutive weeks of net selling of equities despite these expert pundits continuing on in their attempt to deceive investors into believing we are just one or two quarters away from that (now) proverbial recovery.