Bill Gross bets heavily against USA

Discussion in 'Wall St. News' started by Grandluxe, Apr 11, 2011.


    April 10, 2011, 8:30 p.m. EDT
    Pimco's Gross ups bets against U.S. sovereign debt

    NEW YORK (MarketWatch) -- Bill Gross, founder and co-chief investment officer of Pacific Investment Management Co., has turned more bearish on the U.S. government-related bonds including Treasurys, reflecting his growing worries over the country's swelling fiscal deficit and mounting debt burden.

    After dumping all such holdings in Pimco's $235.98 billion Total Return Fund (PTTRX 10.91, 0.00, 0.00%) , the world's biggest bond fund, in February, Gross placed bets wagering on further price decline in these type of securities in March, known as shorts in financial markets. That pushed holdings of U.S. government-related debt weighted by market value down to negative 3% by the end of March compared to zero in February and 12% in January, according to data available on the company's web site on Sunday.
  2. Don't have any doubts who will win in a war between Gross and US Treasury.
  3. He can be a good contrary opinion indicator. :D
  4. When Genghis Khan's forces raged throughout the Middle East and Central Asia, the Russian empire formed a contrary opinion of him and the Mongols, saying he was overstretched and had reached his zenith.

    The grand prince of Kiev was noted as very disdainful towards him and this rag-tag bunch of nomads

    Do you know what happened next?
  5. 3% is far from "betting heavily".
  6. 1) Not fully. :cool:
    2) Can you tell me what today's settlement price in the 10-year note or S&P-500 will be? :confused:
  7. What is this gibberish?

    Gross and the other pimco board members have called short term highs and lows in the bond markets as a contrary indicator several times over the last few years. Look back at the headlines.

    They are obviously going to be 'right' on most of their calls in the long run, but their short term timing has been very poor indeed.

    eg. PIMCO starts an equity only index fund because they are worried about US bonds
    ---> immediate 3 month monster rally in bonds last year...
  8. Two shay! :p

  9. . . :D . .
  10. Pimpco must be psychic. Funny how the Gov goes after the Martha Stewarts of the world but ignores the big guys. I guess they rather us believe that Pimpco is just that good.
    #10     Apr 18, 2011