"This year is a stinker," Pimco's Bill Gross writes in an apology for the Total Return Fund's...


"This year is a stinker," Pimco's Bill Gross writes in an apology for the Total Return Fund's 2011 performance, which lagged 82% of peers with its 1.3% return. Sure, he blew this year's Treasury rally, but the new motto seems to be don't fight the Fed - he's Twisting out of short-term debt into longer-term issues.
Comments (14)
  • X-terminator
    , contributor
    Comments (83) | Send Message
     
    The Fed knows how to manipulate or kill if need be, a so called free market.
    14 Oct 2011, 08:13 PM Reply Like
  • 7footMoose
    , contributor
    Comments (2229) | Send Message
     
    Remember when Bill Miller was on top. When he began to lag his peers he resorted to extremes. Gross is heading in that direction.
    14 Oct 2011, 08:18 PM Reply Like
  • Bill S. Friend
    , contributor
    Comments (715) | Send Message
     
    The market is run by computerized trading and as individual investors continue to bail, it is beginning to resemble the slot machines that dont have a lever to pull...
    14 Oct 2011, 09:44 PM Reply Like
  • KJP712
    , contributor
    Comments (469) | Send Message
     
    Following in the baseball metaphor theme,now might be the time to bring the prized rookie trader up from the minor leagues to replace the old veteran.
    15 Oct 2011, 12:54 AM Reply Like
  • sethmcs
    , contributor
    Comments (3565) | Send Message
     
    My thoughts are Bill is absolutely right but timing was wrong. Eventually the ecomomy will improve and the secular bond bull will flip to a secular bear market. I don't think I would want to be a bond guy when that happens. By the way I sold all my closed end bond funds in December during PIMCO's ill fated bond short. I don't regret that decision at all.
    15 Oct 2011, 01:21 AM Reply Like
  • The Deliberate Trader
    , contributor
    Comments (373) | Send Message
     
    Too big to succeed........Bill Gross IS the herd.
    15 Oct 2011, 03:29 AM Reply Like
  • tigersam
    , contributor
    Comments (1707) | Send Message
     
    That is what happens when you bet against America. Never bet against America.
    15 Oct 2011, 04:51 AM Reply Like
  • Uncle Pie
    , contributor
    Comments (4323) | Send Message
     
    Bill Gross is a nice guy but he doesn't seem to know any more than anyone else. So why is he in the headlines all the time?
    15 Oct 2011, 08:43 AM Reply Like
  • Efsinvestment
    , contributor
    Comments (1595) | Send Message
     
    I think he is in the headlines, because he bet against the bonds, hoping that the interest rates will go up. Given the inflation rates, the treasuries yield something close to nothing (if not negative). He did the right thing, but the timing was wrong. I am not sure about the ratio of short term vs. long term bonds Pimco has, but I guess that "Operation Twist" somehow twisted their plans.
    15 Oct 2011, 11:27 AM Reply Like
  • Tack
    , contributor
    Comments (16389) | Send Message
     
    Maybe, Bill should spend more time thinking about his portfolio and less time shooting his mouth off on CNBC.
    15 Oct 2011, 12:34 PM Reply Like
  • Econdoc
    , contributor
    Comments (2938) | Send Message
     
    Hey Bill. Welcome to the new normal.

     

    E
    15 Oct 2011, 01:33 PM Reply Like
  • Alan Young
    , contributor
    Comments (2415) | Send Message
     
    "Don't fight the fed" has been a core principle of bond investing for generations. Bill must have thought that he'd gotten too big to play by everyone else's rules. Still a grasshopper, it turns out.
    15 Oct 2011, 01:50 PM Reply Like
  • Bill S. Friend
    , contributor
    Comments (715) | Send Message
     
    Bill Gross is a seasoned bond investor and he isnt wrong, the market is wrong. Conventional market wisdom is out the window. Unseen forces influence the direction of the market without regard to value. A slot machine without a handle, and the house always wins.
    15 Oct 2011, 09:34 PM Reply Like
  • 7footMoose
    , contributor
    Comments (2229) | Send Message
     
    "Bill Gross is a seasoned bond investor and he isnt wrong, the market is wrong." BSF I certainly hope that you have said this sarcastically. If not, I hope that you are sitting on either gold or cash.
    16 Oct 2011, 06:00 AM Reply Like
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