Seeking Alpha

Gross: Fears lurk "deep in the bowels of central banks"

  • "Investors are all playing the same dangerous game that depends on a near perpetual policy of cheap financing and artificially low interest rates in a desperate gamble to promote growth," writes Bill Gross (BOND) in his monthly letter. "If monetary and fiscal policies cannot produce the real growth that markets are priced for (and they have not), then investors at the margin - astute active investors like PIMCO, Bridgewater and GMO - will begin to prefer the comforts of a less risk-oriented migration."
  • "Deep in the bowels of central banks, research staffs must lay the unmodelable fear that zero-bound interest rates supporting Dow 16,000 stock prices will slowly lose momentum after the real economy fails to reach orbit, even with zero-bound yields and QE."
  • What Gross and Pimco are most confident about and what they're betting on is the idea the Fed will maintain ZIRP at least until 2016. "Front-end load portfolios. Don’t fight central banks, but be afraid."
  • Short-duration Treasury ETFs: SHY, BIL, SHV, VGSH, SCHO, DTUL, SST, TUZ, DTUS
  • Intermediate and long-term Treasury ETFs: TBT, TLT, TMV, IEF, TBF, PST, EDV, TTT, TMF, TLH, ZROZ, SBND, IEI, DLBS, TYO, DTYS, VGLT, UST, UBT, TLO, TBX, VGIT, GSY, DTYL, LBND, SCHR, TYD, TENZ, ITE, TYBS, FIVZ, TBZ, DFVL, DLBL, DFVS, TYNS
Comments (4)
  • Fear & Greed Trader
    , contributor
    Comments (4560) | Send Message
     
    Unfortunately for the "Gross Pimco" crowd, the exodus from the bond funds has just started,, no matter how much they come out as shills for their funds..
    Bonds have had their place in the sun for quite some time , that is now over..
    Invest accordingly ...
    3 Dec 2013, 09:28 AM Reply Like
  • DeepValueLover
    , contributor
    Comments (8167) | Send Message
     
    Not to worry...

     

    The central bank appetite for bonds is nearly bottomless.

     

    I doubt the 10 Year will see 4% again in my lifetime.
    3 Dec 2013, 09:35 AM Reply Like
  • Mattster
    , contributor
    Comments (162) | Send Message
     
    What he is really saying is that fear lurks deep in the bowls of bond managers
    3 Dec 2013, 09:42 AM Reply Like
  • chopchop0
    , contributor
    Comments (3138) | Send Message
     
    especially people like Bill Gross who tried to call the bottom in bonds 2 years ago LOL
    3 Dec 2013, 09:43 AM Reply Like
DJIA (DIA) S&P 500 (SPY)
ETF Tools
Find the right ETFs for your portfolio:
Seeking Alpha's new ETF Hub
ETF Investment Guide:
Table of Contents | One Page Summary
Read about different ETF Asset Classes:
ETF Selector

Next headline on your portfolio:

|