Something bothered me about the article...so I re-read it...and this stuck out:
"
leads us to believe that Bill Gross is now convinced there will be no QE3 at all,
at least based on his just putting his money where his monthly pen is!
And if Bill Gross...believes there is no more quantitative easing, it is really time to get the hell out of dodge in all security classes - bonds, and most certainly, equities."
Anything stand out?
leads us to believe...
at least based on...
if Bill Gross...believes...
How about pure, baseless speculation on what Gross is doing. Nothing on Bill Gross actually saying why he changed his holdings.
But here's the real kicker.
Ironoically, listening to NPR yesterday , they had none other than Bill Gross on an interview, and asked him specifically why he dumped all of his Treasury holdings.
His answer was very direct. He said that PIMCO analysis confirmed that we should see solid economic growth in 2011...and given that gov't bonds are only yielding near 2%, PIMCO needs to be looking for other sectors that are or will be offering much higher yields than T-bills....such as corporate bonds that yield 6-7% as well as more equities.
So much for the breadlines. At least hearing it from the horses mouth is better than reading a "guess" from someone who probably was pumping the Hindenburg Omen last summmer just before our 20% stock surge.
Not sure if this will play...but here is the radio interview with Bill Gross...about 4 minutes.
http://www.npr.org/player/v2/mediaPl...29&m=134433161
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