Posted on 03/09/2011 12:27:54 PM PST by gregd0180
And many thought Bill Gross was only posturing when he said he is getting the hell out of dodge. Based on still to be publicly reported data by Pimco's flagship Total Return Fund, the world's largest bond fund, in the month of January, has taken its bond holdings to zero (and -14% on a Duration Weighted Exposure basis). The offset, not surprisingly, is cash. After sporting $28.6 billion in "government related" securities, TRF dropped to $0.0, while its cash holdings surged from $11.9 billion to a whopping $54.5 billion (based on total TRF holdings of $236.9 billion as of February 28). This is the most cash the flagship fund has ever held, and the lowest amount in Treasury holdings since January 2009 before it was made clear that the Fed was going to adjust QE1 to include Treasurys in addition to Mortgage Backed Securities. PIMCO's Treasury holdings peaked in June 2010 at $147.4 billion and have declined consistently ever since. And while we expected that the spike in MBS holdings (at times on margin) was indicative of an expectation that QE3 would monetize mortgage backed securities, the ongoing decline in that asset class now leads us to believe that Bill Gross is now convinced there will be no QE3 at all, at least based on his just putting his money where his monthly pen is! And if Bill Gross, the most connected person to the upcoming actions by the Fed, believes there is no more quantitative easing, it is really time to get the hell out of dodge in all security classes - bonds, and most certainly, equities.
Note the plunge in Treasury holdings in the chart below (blue line), offset by the surge in cash (dotted pink line). Time to panic.
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(Excerpt) Read more at zerohedge.com ...
I get the feeling that you are correct. It gives me a sinking feeling. Thanks much for your insight.
http://www.washingtontimes.com/news/2011/mar/10/utah-legislature-goes-gold-silver-legal-tender/
yeah all that gold and silver hedging against the dollar is just nuts...LOL
There is no plan, my friend. You think Obama has a plan other than borrow, spend, and redistribute until he can't borrow anymore? That is his plan, it is on video from a 60 Minutes video, plain as day.
Geitner? He can't even figure out his own taxes. He is in so far over his head he is drowning.
Bernacke? He is bailing a ten gallon hole with a one gallon bucket. How long do you think he can keep the ship afloat?
Half the people in the country don't know the government is broke. Half of the elected representatives don't get it. Despite the fact that the US has to borrow $1.4 trillion a year to keep the government running.
Good question ich, the answer is yes, inflation and deflation can be experienced at the same time in different sectors. Food and energy sectors are experiencing inflation right now. Real estate, durable goods, and labor are experiencing deflation.
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