PIMCO Gross April 2014 column

[gcgang]

PIMCO | Investment Outlook - Bob​​

Bill Gross' latest. My Cliff Notes on what he says:

Expect lower returns, especially in longer duration fixed income.

All living things, including bull markets, eventually die.

[brewer12345]

What he should be saying:

"Holy ****!!! El Erian left and my business is starting to fall apart!"

[ronin]

Beyond his typically tortured metaphors, I was really touched by this one as my mother is day to day at the end of her breaths...

4) Treasure your pets and all living things. Eventually we all stop living.

[audreyh1]

Quote:

Originally Posted by ronin Beyond his typically tortured metaphors......

Great description of his writing style! I can never wade through them. Worse than sermons!

So I appreciate the summaries everyone. BTW my cat made it to 21. Still miss her.

[foxfirev5]

After a long run of market beating returns with PTTRX, I sold off my sizable holding at the end of the year. Gross's investment moves were a little too wild for what I want in a boring bond fund. Kind of reminds me of a double up and catch up strategy at the casino. Now it looks like he just has become resigned to lower returns.

[RetireAge50]

This is the sole bond fund in my 401k. I allocate 10% of my contributions to it. Was thinking of going 100% stocks anyway but now that this is so far down will probably stick it out until it recovers.

[Lsbcal]

The chart shows a comparison of 4 bond funds for 2 years. In order of best performing:
1) Pimco Total Return ETF (BOND)
2) Dodge & Cox Income (DODIX)
3) Pimco Total Return fund (PTTRX)
4) Total Bond Mkt (VBTLX)

Notice that the Total Return ETF has done better then the Total Return fund. They may eventually converge ... someday. Meanwhile I hold BOND and DODIX and have for most of that 2 year period.



And a guy who loves his cat couldn't be all that bad. For my bond money Gross has done just fine. Performance is only 100% of the picture. Plus I really like his monthly blog but it's still all about performance.