Seeking Alpha

Treasury yields that are about 150 basis points too low may be unable to sustain demand for U.S....

Treasury yields that are about 150 basis points too low may be unable to sustain demand for U.S. government debt, Bill Gross writes. "Bond yields and stock prices are resting on an artificial foundation of QE2 credit that may or may not lead to a successful private market handoff and stability in currency and financial markets." Zero Hedge's interpretation: "Pimco just issued a sell rating on everything."
Comments (7)
  • Love the ZeroHedge translation!

     

    Such a refreshing change from the MSM BS.
    2 Mar 2011, 10:16 AM Reply Like
  • Bill Gross changes positions faster than a teenager the first time he gets a copy of the Kama Sutra.

     

    He is the undisputed 'bond' king but this environment is vexing even for royalty.
    2 Mar 2011, 10:19 AM Reply Like
  • Ken, Bill Gross anticipates change and has some of the most brilliant and prescient thinkers in the world on staff. You mentioned that "this environment is vexing," and most of us SA readers would agree with you. That is why I keep my high flyers portfolio sprinkled with Bill Gross/Pimco safe bets like PCN and PLBDX.
    5 Mar 2011, 11:13 AM Reply Like
  • Be careful with PCN. I owned both PCN and PTY during the financial meltdown. Bill was not able to protect any downside and without government intervention, they too would have gone belly up. Nothing is a safe bet when all bets are off.
    5 Mar 2011, 11:26 AM Reply Like
  • Ken, Thanks for the clarity. During the financial meltdown REITs and CEFs like IGR, JDD, DCS, etc. lost so much that investors still have not recovered the losses.
    6 Mar 2011, 11:32 AM Reply Like
  • It should have been well known that Gross was already reducing the holdings of US Debt, this is nothing new. Another fund manager decides that the chances of the US paying back its debt are nil. Great. On to the next story.
    2 Mar 2011, 10:26 AM Reply Like
  • Always tempted to wonder if hedge fund types are "leading" the Market .....
    2 Mar 2011, 11:18 AM Reply Like
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