Posts in Bond Investing
PIMCO: Expect Rising Inflation, Weak Investment Returns

Bill Gross, managing director of bond powerhouse PIMCO, recently opined that investors should expect governments in almost all developed economies to return to the "magic potion" of inflating their way out of massive levels of debt. Known for his nearly constant disdain for equity investing, Gross also noted that future bond returns are likely to be anchored by their current low yields.  

Click here for Bill Gross' August commentary.   

PIMCO: Fed's "Ponzi Scheme" Likely the End of the Great Bond Bull Market

In his latest monthly commentary, PIMCO's Bill Gross opines that the Fed's forthcoming announcement of Quantitative Easing II of writing checks in the trillions to buy Treasury bonds is an inflationary Ponzi scheme that likely signals the end of the 30-year bull market in bonds. 

"The Fed, in effect, is telling the markets not to worry about our fiscal deficits, it will be the buyer of first and perhaps last resort. There is no need - as with Charles Ponzi - to find an increasing amount of future gullibles, they will just write the check themselves. I ask you: Has there ever been a Ponzi scheme so brazen? There has not."

Click here for excerpts from Gross' November commentary, including how the $500 billion PIMCO Total Return strategy may be managed in a negative environment for bonds. 

401(k) Investors Surging into Bonds. A Mistake at These Rates?

In reaction to losses in equities, 401(k) investors in August transferred assets mainly into bond funds, according to the results of the Hewitt 401(k) Index™. A total of $347 million moved from equities into fixed income investments during the month, representing 0.31% of total assets. Seventy-three percent of days during the month saw fixed income-oriented transfers. Click here for a report from the Hewitt 401(k) Index.