I’m not sure about Gross and his partner in crime El-Erian. They sure talk a lot.
It isn’t that I doubt their brainpower, I just wonder if they are a little too restless.
Nevertheless, usually good reading.
Main points of his March 2012 letter:
It isn’t that I doubt their brainpower, I just wonder if they are a little too restless.
Nevertheless, usually good reading.
Main points of his March 2012 letter:
- Over the past 30 years, an offensively minded Federal Reserve and their global counterparts were printing money, lowering yields and bringing forward a false sense of monetary wealth.
- Successful investing in a deleveraging, low interest rate environment will require defensive in addition to offensive skills.
- The PIMCO defensive strategy playbook: Recognize zero bound limits and systemic debt risk in global financial markets. Accept financial repression but avoid its impact when and where possible. Emphasize income we believe to be relatively reliable/safe; seek consistent alpha.
