Fed Running The "Most Brazen" Ponzi Scheme of All Time
This is an important piece, please take the time to read it.
It is written by Bill Gross, founder and Co-CIO of PIMCO, and the worlds largest fixed income fund manager. As the worlds largest fixed income fund manager Mr. Gross has a vested interest in keeping his investors happily invested in PIMCO's bond funds. But as an honest man who has already made a couple of billion for himself he feels compelled to call it like he sees it...and it isn't pretty. In his most recent post he calls the Fed's proposed Quantitative Easing (QE2) the "Most Brazen" Ponzi scheme of all time, and like all Ponzi scheme's it won't end well. Treasury bond buyers will be lucky to not lose significant amounts of their investment. Now of course he hedges his outright bond bearishness near the end of his article by saying that the skillful managers at PIMCO will be able to lose less money for their clients, but there is no mistake in his call ... Sell All Treasuries!
Be careful out there, and keep the light's on,
Chris Wiles, CFA
For prior Rockhaven Views visit:
This article contains the current opinions of the author but not necessarily those of the Rockhaven Capital Management. The author’s opinions are subject to change without notice. This article is distributed for informational purposes only. Forecasts, estimates, and certain information contained herein are based upon proprietary research and should not be considered as investment advice or a recommendation of any particular security, strategy or investment product. Information contained herein has been obtained from sources believed to be reliable, but not guaranteed.
No comments:
Post a Comment