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.

Will mortgage rates, currently at/near generational lows, and bond rates, head lower in the quarters ahead?

That could be the case if one of the world's premiere rate experts is correct. PIMCO's Bill Gross said the U.S. Federal Reserve is unlikely to raise key, short-term interest rates for two to three years, Bloomberg News reported Friday.

Continue reading PIMCO's Gross: Fed to Keep Interest Rates Low for 2-3 Years

PIMCO's Gross: Fed to Keep Interest Rates Low for 2-3 Years originally appeared on BloggingStocks on Fri, 06 Aug 2010 16:30:00 EST. Please see our terms for use of feeds.

For the first time in history, U.S. government debt -- now $13 trillion -- will surpass GDP in 2012, based on forecasts by the International Monetary Fund. Bill Gross of PIMCO calls this a "debt super cycle."

The key problem with such a huge debt is that investors will demand a higher return, which translates into higher interest rates. The interest cost alone on $13 trillion will put an added burden on the government and the people.

Bill Gross further commented that "If real interest rates were ever to go up instead of down," our economic growth will not be enough to support borrowings.

Continue reading U.S. Debt to Surpass GDP

U.S. Debt to Surpass GDP originally appeared on BloggingStocks on Sat, 05 Jun 2010 11:40:00 EST. Please see our terms for use of feeds.

"When it comes to bond managers, you won't find better than Bill Gross, founder and Managing Director of Pacific Investment Management Company (PIMCO)," asserts Amy Calistri.

The editor of The Daily Paycheck explains, "Gross is considered the world's foremost fixed income authority. And when you own the PIMCO Corporate Income Fund (PCN), you tap into his expertise and enviable track record.

She continues, "Since its inception in December 2001, the fund has enjoyed an average annual return of +11.3%. And Gross doesn't generate those returns by holding high-risk junk bonds. The fund's portfolio has an investment-grade credit quality.

Continue reading PIMCO Corporate Income Fund (PCN): Investing with Bill Gross

PIMCO Corporate Income Fund (PCN): Investing with Bill Gross originally appeared on BloggingStocks on Fri, 04 Jun 2010 11:40:00 EST. Please see our terms for use of feeds.

Continue reading Pimco's Gross: Greek Debt Restructuring Is Inevitable

Pimco's Gross: Greek Debt Restructuring Is Inevitable originally appeared on BloggingStocks on Fri, 28 May 2010 12:00:00 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: 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.

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.

The housing bubble and subsequent "Great Recession" have tarnished the stars of a good many of the world's financial wizards, such as the former heads at Lehman Bros. and Merrill Lynch. But one respected image remains -- perhaps unsurprisingly -- on top: Warren Buffett, chairman and CEO at Berkshire Hathaway Inc. (NYSE: BRK.A).

That's according to a recent quarterly poll of investors, traders, and analysts who subscribe to Bloomberg terminals, those somewhat cryptic news and data computers that are ubiquitous on Wall Street. Buffett, who received favorable nods from 25% of those participating in the poll, walked away with a plurality of the vote, Bloomberg News reported.

Continue reading Buffett's star shines brightest among world's financial gurus, poll shows

Buffett's star shines brightest among world's financial gurus, poll shows originally appeared on BloggingStocks on Thu, 29 Oct 2009 12:50:00 EST. Please see our terms for use of feeds.

Why would the government want a weak dollar? To get some perspective on the dilemma facing the Fed, let's go back to the Clinton years. During the 1990s, we had a booming economy. That booming economy fostered a strong dollar policy (i.e., strong economy equals a strong dollar).

Now the tables are turned and we are in the worst recession since the 1930s. We are mired in debt and our unemployment keeps rising. The housing market, while improving somewhat, is still in shambles. Banks are short of money to lend, keeping a lid on expansion, and on and on. So then we have the reverse of the 1990s.

Continue reading The case for a weaker dollar

The case for a weaker dollar originally appeared on BloggingStocks on Sun, 04 Oct 2009 15:10:00 EST. Please see our terms for use of feeds.

Don't be confused by the rhetoric you read and see in the media. We are definitely in a deflationary spiral. Who says so? And what data are you looking at?

Let's read a few quotes from leading traders and analysts:

• Nobel laureate Joseph Stiglitz said: "Deflation is definitely a threat right now."
• Charles Evans, Federal Reserve bank president says: "Disinflationary winds are blowing with gale force effect."

Continue reading Is deflation the real threat to our economy?

Is deflation the real threat to our economy? originally appeared on BloggingStocks on Fri, 02 Oct 2009 18:00:00 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.

"We think that junk bonds -- bonds rated BB+ or lower by S&P or Ba1 or below by Moody's -- are worth considering as part of a diversified income portfolio." says Carla Pasternak.

In her High Yield Investing, she asks, "If you agree with us that one's person's junk may turn out to be your treasure, how do you invest?" She answers by offers a pair of junk bond fund ideas.

"SPDR Barclays Capital High Yield Bond ETF (NYSE: JNK) has a $2.2 billion portfolio of 140 junk bonds. Its holds junk bonds in only three sectors: industrials (75.8%), utilities (12.16%) and financials (8.72%).

"It pays a monthly distribution comprised entirely of earnings. JNK is best held in a tax-advantaged account as distributions are taxed at your marginal income tax rate.

Continue reading Income expert looks to junk bond bets

Income expert looks to junk bond bets originally appeared on BloggingStocks on Wed, 23 Sep 2009 10:20:00 EST. Please see our terms for use of feeds.

Continue reading Closing Bell: Good things really can go wrong ... (AIG, F, MOS, RIMM, WMT)

Closing Bell: Good things really can go wrong ... (AIG, F, MOS, RIMM, WMT) originally appeared on BloggingStocks on Tue, 01 Sep 2009 16:00:00 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.