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HomeBill Gross Projects The ‘Threshold of Mediocrity’
Posted by Larry Doyle on July 3rd, 2010 7:31 AM |
Pimco’s Bill Gross, a Sense on Cents Economic All-Star, recently released his Investment Outlook for July 2010. In my opinion, Gross is an outstanding writer with an uncanny ability to communicate effectively on a host of financial, social, and psychological topics from both a macro and micro standpoint. Given those skills along with the fact that he manages the largest bond fund in the world, “sense on cents” dictates that we ponder his words of wisdom.
These words focus on the structural changes at work in the world today, and how investors should brace themselves for returns that are on the ‘threshold of mediocrity.’
Gross writes:
Global financial market returns stand at the threshold of mediocrity. With bonds priced not for recession but near depression, most major global bond indices now yield less than 3%, surely a forerunner of returns to come. (more…)
Shake Hands With Uncle Sam
Posted by Larry Doyle on February 27th, 2009 5:30 AM |
When trading bonds on Wall Street, I always wanted to know what the largest accounts were doing. A handful of these accounts were so massive that in order to make a meaningful change in their portfolio they had to execute trades of monstrous size. In executing trades with these clients, there was enormous risk. That said, if I did not provide enough liquidity to the accounts then we would stop seeing their inquiry. Information is everything, so not seeing their business was even more dangerous than printing some of it. Given this balancing act, I would try to pick and choose my spots. Amongst these clients is the largest bond manager in the country, Pacific Investment Management Company, otherwise known as Pimco, headed by the legendary Bill Gross (one of our Economic All-Stars highlighted in the lower left sidebar).
Bill offers his thoughts on a monthly basis. Anybody with even passing interest in the markets should read his remarks. I will offer an overview: (more…)
