Bond-king Bill Gross labelled global central banks’ $12 Trillion balance sheets as ‘methadone’ for investors, as they continue to crave debt and low rates. Without it, he says the US economy would sink into recession. “A 2.45%, 10-year U.S. Treasury rests at 2.45% because the ECB and BOJ are buying... Show More
In Bill Gross’ latest note to investors he has bucked consensus once again. Despite the possibility of “a temporary acceleration over the next few years,” he maintains his long-term negative view based on demographics, debt levels, technology, and the reversal of globalization. In absence of clear fundamentals, he turns to... Show More
We’ve posted about the issue of sticking with your investment strategy before – see here: https://www.livewiremarkets.com/admin/wires/33581 and here: https://www.livewiremarkets.com/wires/33932 But it’s a topic that’s worth revisiting. AQR Capital, manager of over US$170B has released a research paper on exactly this subject. They look at Berkshire Hathaway, PIMCO’s Total Return Fund... Show More
Too much bullishness is never a good thing! For precious metals bulls, it is worth keeping that in mind, with the metal up circa $350oz in 2016 already. Show More
'Bond-King' Bill Gross' latest letter again laments zero/negative interest rates, and labels "land, gold, and tangible plant and equipment" as "favoured assets." There was no love at all for financial assets: "I don’t like bonds; I don’t like most stocks; I don’t like private equity." Gross warned investors that they... Show More
In his latest note, ’Bond King’ Bill Gross has warned that “our credit-based financial system is sputtering, and risk assets are reflecting that reality even if most players (including central banks) have little clue as to how the game is played.” Using an interesting analogy based on a game of... Show More
Veteran investors Bill Gross, thinks the Fed has lost sight of the consequences of their actions. “The closeness to the zero bound, it basically robs savers of their ability to earn money and threatens business models such as insurance companies and banks in terms of their margins. Certainly pension funds... Show More
The central banks all seem to believe that there is an interest rate SO LOW that resultant financial market wealth will ultimately spill over into the real economy. I have long argued against that logic and won’t reiterate the negative aspects of low yields and financial repression in this Outlook.... Show More
Historically, central banks have comfortably relied on a model which dictates that lower and lower yields will stimulate aggregate demand and, in the case of financial markets, drive asset prices up and purchases outward on the risk spectrum as investors seek to maintain higher returns. Today, near zero policy rates... Show More
Bill Gross has released his latest “Investment Outlook” where he focuses on global interest rates and geopolitics. He concludes that “There is no statistical reason per se for the Fed to raise interest rates, yet absent a major Show More
Bill Gross in his latest investment outlook warns that “While Dodd Frank legislation has made actual banks less risky, their risks have really just been transferred to somewhere else in the system.” Gross specifically points to the new "Shadow Banks" - Mutual Funds and ETFs - saying “While private equity... Show More
Bill Gross says that the Fed will raise rates “sometime this year. You know, if you’re sick in bed, you’re lying around for 24 hours, at some point you just want to get out of bed and walk around the house for a while. And I think the Fed wants... Show More
Janus Capital’s Bill Gross believes the “supercycle” for stock and bonds is coming to a close once the Fed’s unconventional monetary policies wind down. The former PIMCO leader said “credit based oxygen is running out” which helped drive the long bullish trend in both stocks and bonds. Gross doesn’t necessarily... Show More
Bill Gross and Pimco, one the world's largest bond investors, are betting on low volatility moving forward. The company is wagering on the new neutral which relies on lower interest rates and low but steady global growth. Pimco's fund managers are actively selling options and taking large positions in interest-rate... Show More
Gross' Twitter advice to buy 5-year Treasuries raises suspicion, ethical questions. Bill Gross of the PIMCO fund gave his Twitter followers some investment advice today: buy 5-year Treasuries, growth is too low for the Fed to taper. While this advice has some logic, it's also a little suspicious. If 5-year... Show More