This is impossible to continue. I'd rather that it pulls back a little and up the dividen. Maybe that's just me, but can't see the NAV going much higher.
That being said, I'm 54 and have a ways to go. Love Mr. Gross, and I'm staying right here. You know with the kind of money they have they could change whole economies. Maybe even buy some countries! WOW !!
As far as the market...I'm a TA guy. Back in July last year on my wife's birthday, the Nasdaq daily gapped up from 1800. These index gaps always get filled and that one never did! I'll be waiting with more funds whenever the market returns to fill it. In the meantime I'm in these type of bond funds and micro stocks.
I don't think it's tied to anything specific, but it does hold a lot of Treasury Futures,
which is made up of 10,5,2's. I just use 10 year a a direction indicator. Yesterday the
10yr was still going up, but PTTRX dropped a tad. But today the 10 year has finally
broke, so maybe PTTRX is the leading indicator.
In regards to the economy, I agree. Things look bad. But I was certain that we
were going to heck in a hand basket a year and a half ago. And things changed.
Apparently Gross is a master at using derivatives to lessen the impact of interest rate changes and to increase earnings. According to Kiplingers, he's been using derivatives in Pimco for decades.
Until a double dip recession is ruled out, what would cause the 10 year bond value to go down? The economy seems to be getting worse by the week. I don't see our president changing his private company crushing ways and private jobs rebounding anytime soon. The housing market has already started a double dip. I still think this fund gives us a decent yield while protecting us from a large selloff. I'd love to time the top though if I thought I could.
By the way... this bond fund shouldn't be tied to the 10 year anyway should it? I was thinking 2-7 years. Pimco can also use hedging in this fund to increase our yields and help protect principal.
I am now starting to sell out of this fund and into cash,
every day the 10 year moves up. As rates go
down, the risk/reward get worse on the dividend
and the upside limit gets closer. Cash is not so bad
when compared to 2%, and i will be totally out if
we get to that point. JMO
Everyone is flocking to bonds because of the economic situation. There are serious problems and the FED has been pumping stocks and a recovery that is not there. People know a double dip is coming. Stocks are about to get killed and new lows on the DOW/S&P are imminent.
The 10 yr today is at 3.01% and the 30yr is at 4.00%
This indicates economic slowdown, and fear in the markets or a depression coming. The aftermath will be sharp inflation, and more likely hyper-inflation. The FED will have to print more money soon and ask for more money from Congress. Hopefully, this time it goes to the people and not banker and businesses as bailouts.
They need to issue some large lump sum stimulus to people to get this economy going and get job growth again. Otherwise its all futile. The system will completely collapse if the do another bailout for businesses and it fails. We are already on the verge of collapse now.