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"Switching to the markets, stocks are getting crushed. The Dow Jones industrials have fallen 1.6% from last month’s record high. Is this the beginning of a much steeper selloff?"
If falling 1.6% is "crushed", best hope we don't get an actual "Armageddon" of 10%.
Interesting interview. Gross doesn't want to talk about Total Bond. He skimmed right over that question whether it might have shown a weakness or anything Pimco related.
Yep, if 1.6% is crushed, I also wonder what 10 or 20% is? The choice of adjectives is becoming of a media hound.
The Fed just said it expects the Fed Funds rate to be 3.75% by the end of 2017. Gross has a strong opinion about what would result:
"The Fed has said that the appropriate interest rate long-term to keep the economy in balance is 3.75% to 4%. I say it’s 2%. If the Fed follows through by raising the federal funds rate to 4% in the next few years, there will be bear markets for all assets."
Comments
If falling 1.6% is "crushed", best hope we don't get an actual "Armageddon" of 10%.
Yep, if 1.6% is crushed, I also wonder what 10 or 20% is? The choice of adjectives is becoming of a media hound.
The Fed just said it expects the Fed Funds rate to be 3.75% by the end of 2017. Gross has a strong opinion about what would result:
"The Fed has said that the appropriate interest rate long-term to keep the economy in balance is 3.75% to 4%. I say it’s 2%. If the Fed follows through by raising the federal funds rate to 4% in the next few years, there will be bear markets for all assets."