Bill Gross Recent Decision

[MichaelGeorge]

Looks like Bill Gross does not want to have large positions of U.S. Treasuries in their portfolios (including Total Return).

He has dumped all Treasuries from the Pimco Total Return Fund (the world’s biggest mutual fund).

Full article can be found on Bloomberg web site.

 

[jimnjana]

I guess he knows what he is doing. His track record speaks for itself.

 

[Spanky]

He cites low artificially yields as the reason to remove Treasury bonds but does not mention what he's buying. Does anyone know?

 

[clifp]

He cites low artificially yields as the reason to remove Treasury bonds but does not mention what he's buying. Does anyone know?

This person says Gross is buying foreign bonds. Another person said that Gross basically put out a sell order one everything, which would mean PIMCO would have a high cash positions.

Historically Gross tells people what to do well after he has done it.

 

[Tadpole]

Sorry if this is a dumb question.

So Gross is THE last word in bonds. Everyone follows the leader as far as I can tell.

Gross sells out and suppose he goes to cash or some other semi-safe position. Everyone follows bring prices down. Then he goes in and re-buys at a much lower price than he sold.

What keeps Gurus from doing something like this occasionally when earnings are low to non-existent?

I know interest rates are going up and what he did makes sense but if he can get a big bang discount on the future now, why couldn't he do something like this?

 

[teejayevans]

Sorry if this is a dumb question.

Gross sells out and suppose he goes to cash or some other semi-safe position. Everyone follows bring prices down. Then he goes in and re-buys at a much lower price than he sold.

What keeps Gurus from doing something like this occasionally when earnings are low to non-existent?

Pump & dump is illegal, however, if he does it a month from now, he doesn't have to tell us was he is doing. P&D is only illegal if what you say can be proven as a lie, a month from now he can say, things changed. The best way to capture his returns would to buy his fund, which I'm guessing is the point of him doing TV interviews.
TJ

 

[joesxm3]

I recently heard a line of reasoning that Japan will now have to raise a lot of cash to rebuild and recover from the recent disasters. The suggestion was made that this would make them stop buying U.S. Treasuries or perhaps even start selling them.

This would seem to be bad for Treasuries and would seem to make problems for programs like QE2, QE3 and QE4.

Do you think this will amplify the issues that PIMCO was citing?

Do you think that reducing the pool of potential buyers of Treasuries will have some more serious long term implications?

 

[Nords]

Historically Gross tells people what to do well after he has done it.

It's not as if we can understand him when he's saying it...