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Risk-averse Treasury investors are likely to get themselves a big haircut if they stay in, warns...

Risk-averse Treasury investors are likely to get themselves a big haircut if they stay in, warns Pimco's Bill Gross. "All interest rates are on a negative basis,” Gross says. So - although he stops short of recommending an outright buy - if you want to preserve your purchasing power, you need to be looking at riskier "real" assets like stocks, high-yield bonds, real estate and gold. (Video)
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Comments (8)
  • Guardian3981
    , contributor
    Comments (2075) | Send Message
     
    I remember the last time he made similar comments, ironically he did the exact opposite of what he said.
    23 Jul 2012, 09:52 PM Reply Like
  • Economic Analyst
    , contributor
    Comments (2526) | Send Message
     
    That's a good strategy ; listen to what he says and do the opposite.
    23 Jul 2012, 10:25 PM Reply Like
  • untrusting investor
    , contributor
    Comments (9965) | Send Message
     
    Got to agree with Gross that Treasuries are not much of a buy at this point. But then what is at current levels .. not much without substantial risk?
    23 Jul 2012, 10:51 PM Reply Like
  • Pwdrskir
    , contributor
    Comments (135) | Send Message
     
    I've followed Gary Shilling for years and I would listen to him over Bill (I sold $Bs of US Treasuries at the wrong time and lost big $$)Gross.

     

    Shilling can see 1% on the 10yr and 2% on the 30yr and I believe him. He also believes we’re already in a recession.

     

    Gary Shilling -"You look at retail sales there were negative for three consecutive months, April, May, June. That's happened only 27 times there were first reported in 1947 and in 25 of the 27 it was in a recession or within three months of a recession."
    http://read.bi/NHnu6D
    23 Jul 2012, 11:03 PM Reply Like
  • Tack
    , contributor
    Comments (13542) | Send Message
     
    Pure nonsense.

     

    There have only been eleven recessions since 1947, so it's quite difficult to have been correct 25 times, even for the most ardent pessimists.

     

    http://bit.ly/xYJZtH
    24 Jul 2012, 12:10 AM Reply Like
  • Pwdrskir
    , contributor
    Comments (135) | Send Message
     
    Sorry, the quote I copied from BI was choppy, update: "You look at retail sales and they were negative for three consecutive months, April, May, June. That's happened only 27 times since they were first reported in 1947 and in 25 of the 27 it was in a recession or within three months of a recession."

     

    He wasn’t saying there were 25 recessions, he said "in 25 of the 27 (times there were 3 months of sales declines) it was IN (during) a recession or within three months of a recession." Since recessions can last longer than 3 months, add some of the 25 times during the recessions.
    24 Jul 2012, 05:37 PM Reply Like
  • positivethoughts
    , contributor
    Comments (1927) | Send Message
     
    Buy a dividend aristocrat instead of a treasury. At least businesses have 'real' assets, where as a treasury bill is a just a promise to pay with devalued dollars within a year.
    23 Jul 2012, 11:07 PM Reply Like
  • srvr
    , contributor
    Comments (5) | Send Message
     
    At least TLT pays a monthly dividend and you can sell a covered call for a bonus. TIP will do likewise.
    23 Jul 2012, 11:20 PM Reply Like
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