Gross, much like Warren Buffet, does not tell it like it is.
A case in point involves his purchase of muni bonds for his own account while trashing government obligations of which he claimed then their value were to drop because of higher going rates. The man who predicted higher going rates surely wouldn't buy munis for his own accountao. Also, the man who predictao the DJI would hit 5,ooo several years back.
Anyway, contrary to his predictao of earlier this year, rates have gone down while the price of securities in question have gone up. So much for what he publickao says. BTW, his munis purchase must be doing well.
It means Bernank will print all the money Fed needs at zero negative interest rate. Making long term's 3% rate relatively attractive. So investors are supposed to rush into 10 year bonds ? Driving long term rates down ?
I see Fed printing short term bonds only from now on. Will current investors dump the long term knowing Fed is inflating big time, or crave for more because the rates are 'better' than the short term ?
Sold my TBT. Bertank already said rates will be kept low. Gross has told us how he will do it. quoting Bertank's old speech. Remember 'Don't fight the Fed'. Doesn't matter it is right,he will force it his way.
If Gross is right, we should see repeat of last September. Commodities,gold,silver rush. The miners stock are down 30% due to end of QEII. This is where I'm going.