Seeking Alpha

Gross: "Taper-light" coming

  • "I think Bernanke and company are committed to the taper," says Bill Gross, reacting to this morning's jobs report. "It will be taper-light as opposed to taper-strong," he adds, expecting a $10B reduction (from $85B) in the current monthly pace of bond purchases.
  • Bond stars like Gross, Jeff Gundlach, and Dan Fuss have seen a large exit of cash from funds since the May fixed-income selloff began. Pimco's $251B Total Return Fund (ETF version BOND) has lost 14% of AUM through a combination of withdrawals and losses.
  • The Fed Funds rate remains at zero, reminds Gross, and because of that investors should stick with short-duration Treasurys (SHY) as well as paper set to gain value on credit improvement (LQD, HYG, JNK).
  • Short-duration Treasury ETFs: SHY, SHV, IEI, BIL, TUZ, FIVZ, DTUL, VGSH, DTUS, DFVS, DFVL, SST, ISTB, TBZ.
Comments (2)
  • nemonemo
    , contributor
    Comments (309) | Send Message
     
    Obama the moron of the century created a joke of peoples financials. All these money printing and guessing game killed the return for those middle ages and about to retire people. Yet Obama is their favorite.
    6 Sep 2013, 03:59 PM Reply Like
  • aardvark3
    , contributor
    Comments (339) | Send Message
     
    Right, let's go back to Bushy and see how things go. Obama had an enormous pile of crap to clean up from people like you.
    6 Sep 2013, 04:05 PM Reply Like
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