This is indeed a dramatic move. The world's largest bondholder, Pacific Invest Management Company, dubbed Pimco, sold all of its U.S. government holdings including U.S. treasuries.

At the end of February, Pimco had $236.93 billion or 12% of its holdings in the Total Return Fund in U.S. holdings. That was cut to zero.

Continue reading Pimco's Gross Sells All U.S. Government Holdings

Pimco's Gross Sells All U.S. Government Holdings originally appeared on BloggingStocks on Wed, 09 Mar 2011 15:30:00 EST. Please see our terms for use of feeds.

Continue reading Pimco's Bill Gross: Watch Out for the End of QE2

Pimco's Bill Gross: Watch Out for the End of QE2 originally appeared on BloggingStocks on Wed, 02 Mar 2011 14:30:00 EST. Please see our terms for use of feeds.

Bond money managers are usually glum. Then again, they need to be cautious since they are locking up money at fixed rate of returns. In a volatile world, this can certainly be a risky proposition.

So it should be no surprise that the biggest bond money manager, Bill Gross, is not enthusiastic about 2011. He leads the Pacific Investment Management Co., which has $1.2 trillion under management.

Continue reading Bill Gross Opines on 2011

Bill Gross Opines on 2011 originally appeared on BloggingStocks on Thu, 06 Jan 2011 13:20:00 EST. Please see our terms for use of feeds.

Continue reading PIMCO Municipal (PMF): A 10% Tax-Equivalent Yield

PIMCO Municipal (PMF): A 10% Tax-Equivalent Yield originally appeared on BloggingStocks on Wed, 06 Oct 2010 10:00:00 EST. Please see our terms for use of feeds.

Throughout history, there have been periodic bubbles. Unfortunately, they have always ended badly.

Of course, the U.S. markets have experienced several bubbles over the past two decades. There was the dot-com surge as well as the real estate mania.

But now the bond market is in the midst of a bubble -- and it could be in the late stages. In fact, the bond market has likely been in a bubble since the early 1980s.

Continue reading Beware the Bond Bubble

Beware the Bond Bubble originally appeared on BloggingStocks on Mon, 23 Aug 2010 16:00:00 EST. Please see our terms for use of feeds.

Continue reading PIMCO: 25% Chance of Deflation in U.S.

PIMCO: 25% Chance of Deflation in U.S. originally appeared on BloggingStocks on Thu, 05 Aug 2010 17:10:00 EST. Please see our terms for use of feeds.

Continue reading Pimco Director Sees 'Very Extended Period' for Fed's Low Interest Rates

Pimco Director Sees 'Very Extended Period' for Fed's Low Interest Rates originally appeared on BloggingStocks on Thu, 17 Jun 2010 15:30:00 EST. Please see our terms for use of feeds.

Continue reading Bond King Bill Gross Buys His Own Funds

Bond King Bill Gross Buys His Own Funds originally appeared on BloggingStocks on Tue, 25 May 2010 14:40:00 EST. Please see our terms for use of feeds.

Continue reading Pimco's Gross Says That Greece Must Restructure Its Debt

Pimco's Gross Says That Greece Must Restructure Its Debt originally appeared on BloggingStocks on Fri, 07 May 2010 14:00:00 EST. Please see our terms for use of feeds.

Continue reading Pimco's Gross: Ratings Agencies Lack Common Sense

Pimco's Gross: Ratings Agencies Lack Common Sense originally appeared on BloggingStocks on Wed, 05 May 2010 17:40:00 EST. Please see our terms for use of feeds.

Continue reading Closing Bell: Could Have Been Far Worse (C, AIB, OXGN, OSTK)

Closing Bell: Could Have Been Far Worse (C, AIB, OXGN, OSTK) originally appeared on BloggingStocks on Wed, 31 Mar 2010 16:20:00 EST. Please see our terms for use of feeds.

There's bad news and good news regarding Bill Gross's latest assessment of global credit markets.

The bad news is that Gross, who heads the world's largest mutual fund at PIMCO, said government bailouts point to a global "unicredit" bond market in which sovereign debt rates mirror those for corporations, Bloomberg News reported Monday.

Continue reading PIMCO's Gross Sees Sovereign Debts Rates Approaching Corporate Rates

PIMCO's Gross Sees Sovereign Debts Rates Approaching Corporate Rates originally appeared on BloggingStocks on Mon, 01 Mar 2010 17:00:00 EST. Please see our terms for use of feeds.

The March British pound futures traded at $1.5928 on Thursday. BNP Paribas, an international commodities trading firm, predicts that the pound will fall to $1.5730 in the coming weeks and then to $1.40.

Analyst Ian Stannard, said that the pound could "fall off the cliff." Some high-profile bond investors, including Bill Gross's Pimco investments, are pulling back from the purchase of Gilts (British bonds). Some investors are even pulling out completely.

Continue reading BNP Paribas Says the Pound Will 'Fall off the Cliff'

BNP Paribas Says the Pound Will 'Fall off the Cliff' originally appeared on BloggingStocks on Fri, 08 Jan 2010 11:00:00 EST. Please see our terms for use of feeds.

Bill Gross is one of the world's biggest investors. In his recent monthly letter he cites the dangers of ultra high deficits in the US.

But first, we must cite Gross' comments on the state of our democracy. He said: "Our democracy does not work anymore, or perhaps more accurately, when it does, it works for special interests and not the American people." "When special interests even singular citizens write a check, it represents a perversion of democracy, not the exercise of the First Amendment..."

Here's another priceless quote: Referring to the money spent by health care lobbyists, he said: "What amazes me the most of all is that politicians can be bought so cheaply."

Continue reading Gross Says Deficits Will Push Up Interest Rates and Other Priceless Comments

Gross Says Deficits Will Push Up Interest Rates and Other Priceless Comments originally appeared on BloggingStocks on Thu, 07 Jan 2010 18:30:00 EST. Please see our terms for use of feeds.

Continue reading PIMCO's Gross: Investors Must Prepare for the End of Easing, Stimulus

PIMCO's Gross: Investors Must Prepare for the End of Easing, Stimulus originally appeared on BloggingStocks on Wed, 06 Jan 2010 17:40:00 EST. Please see our terms for use of feeds.

Continue reading PIMCO's Bill Gross buying U.S. Treasuries as protection against deflation

PIMCO's Bill Gross buying U.S. Treasuries as protection against deflation originally appeared on BloggingStocks on Tue, 29 Sep 2009 17:20:00 EST. Please see our terms for use of feeds.

Mark Kiesel, at Pimco's Pacific Investment Management Company says it's best to sell your junk bonds now. Why is he saying this? The key factor is that economic growth is not there. Kiesel looks for only 1-2% growth in GDP next year.

All of this talk about "green shoots" simply is not materializing. Kiesel says the "green shoots" are turning to weeds. He further said that credit is not re circulating. Business financing costs range from 10-12%, making it difficult for some businesses to stay afloat.

Continue reading Pimco's Kiesel says: "sell your junk."

Pimco's Kiesel says: "sell your junk." originally appeared on BloggingStocks on Fri, 10 Jul 2009 17:40:00 EST. Please see our terms for use of feeds.

During the current global crisis, many investors have been following the wisdom of Mohamed El-Erian, who is the co-CEO of Pimco, the largest bond manager. In fact, he recently put out a report, called the "Secular Outlook," which has a three-to-five year forecast.

Unfortunately, if El-Erian is correct, we'll need to get accustomed to a "new normal" of muted economic activity.

While the massive governmental intervention has helped to stabilize the financial system, there are nonetheless real costs, which will make it tougher for businesses to innovate and take risks. Plus, the de-leveraging process will continue to be a drag. It will also be tougher to engage in international trade because of new barriers.
The upshot is slower economic growth and higher unemployment.

Continue reading The new normal: 2% economic growth?

The new normal: 2% economic growth? originally appeared on BloggingStocks on Wed, 27 May 2009 09:00:00 EST. Please see our terms for use of feeds.

In February I interviewed Bill Gross back when the Dow traded at 7,182. Gross's message? Equities are dead. Or more specifically, in light of his expectation that there would be no economic growth for the foreseeable future, there was no point in risking an investment in common stock since it stands in line behind all sorts of debt for a piece of the cash flows of a company in the event of a bankruptcy.

Interestingly, President Obama spoke to reporters not long thereafter -- on March 3rd to be specific when the Dow was at 6,726 -- and during that talk, he mentioned that buying stocks might be a good deal. Since then, the Dow has risen 21.5% and since Gross recommended staying away from stocks, they've gained 13.8%. The Dow is at 8,175 as of this writing.

Continue reading Is President Obama a better stock picker than Bill Gross?

Is President Obama a better stock picker than Bill Gross? originally appeared on BloggingStocks on Fri, 17 Apr 2009 16:30:00 EST. Please see our terms for use of feeds.

Just when I think I have heard it all, they come up with something even more eye-poppingly incredible. That's right folks. First they sucked you into the dot-com boom; then wiped out your tech stocks. Next they urged you to buy houses with money you couldn't pay back -- and those houses plunged in value while the global stock markets lost half their value -- further decimating your net worth.

Now they want to give you the once in a lifetime opportunity to buy the very toxic waste that is sinking the entire global financial system. And if you have a job in state government, your pension fund may be enticed into this financial sludge as well.

Continue reading Wanna buy some toxic waste?

Wanna buy some toxic waste? originally appeared on BloggingStocks on Thu, 09 Apr 2009 10:30:00 EST. Please see our terms for use of feeds.