Bill Gross

[kennynah]

so... mati lah liddat

[winston]

Time for dinosaurs to retire. This is the age of the machines ...

[winston]

And u still wanna follow this guy ?

Pimco's Gross: US, Europe on Verge of Recession
Tuesday, 30 Aug 2011 12:48 PM

The global economic crisis is leading to a possible “developed economy” recession in the U.S. and Europe, which may be hard to alleviate, according to Pacific Investment Management Co.’s Bill Gross.

In this environment, the world’s biggest manager of bond funds favors investing in Australia, Mexico, Brazil and Canada, along with non-dollar currencies that have strong ties to the Asian continent, Gross, co-chief investment officer and founder of Pimco, reiterated.

Although global equities are attractive because dividend yields in many cases are higher than bonds, they’re vulnerable to faltering growth, Gross wrote in a monthly investment commentary published on Pimco’s website today.


http://www.moneynews.com/StreetTalk/Pim ... /id/409176

[kennynah]

it's his job to yak away, else the board will be wondering if he is working at all...a very highly paid employee, no doubt...

that's america, not singapore, where some one can get paid sgd4.4mil a year to cut ribbons and make useless statements...

[winston]

PIMCO TURNS BULLISH ON BONDS AFTER HISTORIC RALLY
by David Schawel

536 out of 584. That is the 1yr ranking of PIMCO’s Total Return Bond fund as of 9/30/2011 versus other funds in their Lipper intermediate grade fund group.

This afternoon’s news out of Newport Beach was nothing short of astounding: PIMCO raising effective duration of their $200+billion Total Return Fund up to 7.14.

It’s a bit premature to call a bottom on rates, and diminishing economic growth prospects coupled with the European crisis could prove these moves to be quite prescient.

What is known is clear however- one of the most famous bond managers of all time, on the heels of atrocious relative performance, has just made a dramatic bet on interest rates continuing to stay low or go lower.

Poor short term performance or not, this view by PIMCO should open eyes to their apparent bearish view.

http://pragcap.com/pimco-turns-bullish- ... oric-rally

[winston]

The bigger they are, the harder they fall ...

Some of the industry's surest shooters lost their focus this year. Bill Gross, co-chief investment officer of PIMCO, bet heavily against Treasuries, which turned out to be a top performer in 2011.

Investors responded by yanking $10.3 billion from PIMCO's Total Return Fund [PTTRX 10.85 -0.03 (-0.28%) ] in the year to November, according to fund tracker Morningstar.

Source: Reuters

[winston]

And how much did he lose the last round ?

Gross: “Great Risk” Ahead

Heading into 2012, PIMCO’s Bill Gross sees a world of “fatter tails” and “great risk” for global economies and financial markets.

“In the face of a delevering zero-bound interest rate world, investors must lower return expectations,” Gross writes in his latest commentary on PIMCO’s site.

“2–5% for stocks, bonds and commodities are expected long term returns for global financial markets that have been pushed to the zero bound, a world where substantial real price appreciation is getting close to mathematically improbable.

Adjust your expectations, prepare for bimodal outcomes. It is different this time and will continue to be for a number of years. … The financial markets and global economies are at great risk.”

Gross says financial markets “are slowly imploding — delevering — because there’s too much paper and too little trust.”

While some segments of the global economy, like U.S. and European households, have delevered, “credit as a whole remains resilient or at least static because of a multitude of quantitative easings in the U.S., U.K., and Japan,” Gross says.

He says a “tidal wave of QE” is coming out of Europe, in disguise. It is occurring through “LTRO (three-year long term refinancing operation), which in effect can and will be used by banks to support sovereign bond issuance.”

Italian banks, for example, “are now issuing state guaranteed paper to obtain funds from the European Central Bank and then reinvesting the proceeds into Italian bonds, which is QE by any definition and near Ponzi by another.”

Gross sees on one hand a potential for major inflation because of the continued quantitative easing by central banks. But on the other hand, he says there is also a major danger of delevering.

A big part of the reason, he says, are zero-bound interest rates. With yields so low, banks have trouble capitalizing on interest rate spreads, he says, and the combination of low yields and credit risk are a toxic mix that gives people little reason to give banks their money.

And, he says, “When the financial system can no longer find outlets for the credit it creates, then it de-levers.”

Gross expects the Federal Reserve will discuss a sort of stealth quantitative easing program at its January meeting. If that doesn’t work, then he foresees a “QE3″.

He thinks that with such divergent outcomes possible for the market — i.e., major delevering or major inflation — investors should hedge their bets until things become more clear.

He gives his tips for bond and stock investing. Among them: Equity investors should “favor higher yielding companies in sectors with relatively stable cash flows: Electric utilities (yes they appear overbought), big pharma and multinationals should head your shopping list.”

http://theguruinvestor.com/2012/01/10/g ... isk-ahead/

[winston]

Pimco’s Gross: Central Banks Printing Money ‘Like Gangbusters’ Will Fuel Inflation
By Julie Crawshaw

Pimco co-CIO Bill Gross says the fact that central banks are printing money "like gangbusters" could reignite inflation.

By adding "hundreds of billions" of currency into circulation, central banks "can produce reflation — that's why we’re seeing the pop in oil, gold" and other commodities, Gross told CNBC.

However, there’s also "the potential for deflation if the private credit markets can’t produce some sort of confidence and solvency going forward," says Gross.

"So we’re at great risk here, not only in the U.S. but on a global basis."

Gross says he expects the Federal Reserve will keep interest rates 25 basis points for the next three to four years.

Though Gross's Total Return Fund, the world's largest bond fund, saw more than $10 billion in outflows in 2011, the fund began last year at $240 billion and ended it at $244 billion.

Gross, who has previously predicted a “paranormal” market in 2012 suffering from "credit and zero-bound interest rate risk" and fewer incentives for lenders to extend credit, says investors must lower their expectations for returns, with 2 percent to 5 percent as good as they will get this year.

Gross says he will manage the Pimco Total Return Fund ETF, slated to open on March 1, in the same manner as the Total Return Fund. "They're twins," he says.

According to Seeking Alpha, the Federal Reserve balance sheet has expanded from $869 billion on August 8, 2008, to $2.929 trillion on December 28, 2011.

This is an average increase per month of $55.1 billion or an annual increase of $661 billion.


http://www.moneynews.com/StreetTalk/Pim ... /id/424084

[winston]

"I'm Bill Gross And I Endorse Ron Paul For President" by Tyler Durden

As a follow up to today's must read letter from Bill Gross, the PIMCO head explains what was the thinking behind the conclusion that is slowly leading him to become a gold bug, the potentially erroneous assumption that the Fed can not drop rates below zero (not if Goldman and JPM have their way), why Bernanke has no choice but to write checks when the Twist ends in June which will lead to bond buying for the next 12-24-36 months.

Nothing new. What is new, and absolutely stunning, is Gross' endorsement for president: 'I'm a little Ron Paulish." (6'24" into the clip)... That's right.

The bond king endorses Ron Paul for president, apparently on the realization that very soon he will have to pay Tim Geithner for the privilege of holding hundreds of billions in US paper. And now we've heard it all.

http://www.zerohedge.com/news/im-bill-g ... -president

[winston]

Pimco's Bill Gross is loading up on Treasurys again...

Pacific Investment Management Co.'s Bill Gross increased his holdings of Treasurys to the highest level since July 2010, while billionaire investor Warren Buffett called them "dangerous."

Gross boosted U.S. government and Treasury debt to 38 percent of assets in Pimco's $250.5 billion Total Return Fund, the world's biggest bond fund. The position in January climbed from 30 percent in December, according to a report on the company's website yesterday.


Source: Bloomberg