Bill Gross Eliminates Government Debt From Pimco's Flagship Total Return Fund

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posted on Mar, 9 2011 @ 11:12 PM
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Gross Eliminates Government Debt From Pimco’s Flagship Total Return Fund
By Susanne Walker - Mar 9, 2011 11:09 AM PT

Bill Gross, who runs the world’s biggest bond fund at Pacific Investment Management Co., eliminated government-related debt from his flagship fund last month as the U.S. projected record budget deficits.

Pimco’s $237 billion Total Return Fund last held zero government-related debt in January 2009. Gross had cut the holdings to 12 percent of assets in January, according to the Newport Beach, California-based company’s website. The fund’s net cash-and-equivalent position surged from 5 percent to 23 percent in February, the highest since May 2008.
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posted on Mar, 9 2011 @ 11:51 PM
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I have $15,000 invested in Pimco and pray it makes money. I am a very small time invester through my retirement and wonder if this announcement is good or bad news.



posted on Mar, 10 2011 @ 10:15 AM
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The basis for Gross pulling out of Government bonds completely is that he doesn't feel there will be a QE3. The market is riding on an artificial wave of QE2 credit.

IMHO, QE3 would cause further inflation and global instability. I suspect the Fed and global government entities know this. QE3 would cause an even greater deficit, and raise the cost of financing debt interest.

No QE3 means a stronger dollar. If this is true then there should be a long term decline in values of stocks and commodities.





 
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