Pimco has a good track record. Their crystal ball may have been clouded... but they are active managers.... not the benchmark.
Still, he had to explain the difference in returns from the benchmark... as any manager would.
Equity and other markets are still rattled, the economy is extremely weak, we suffered a debt downgrade, rates are at historic lows (yet money is still pouring in for interest rates that are historically low)... can't be anything but fear to preserve capital.
Many of us are wrong... the conventional wisdom was... interest rates will probably rise soon since it looks like we might be on the road to recovery.
Right now, some of our problems are politically induced.... here and in Europe. Bernanke making his statement about rates was clearly an unusual event.