These days you do have to ask yourself if this latest news is a headfake, or the real deal.
Here’s MISH’s take:
Pimco dumps; Six reasons to fade Bill Gross http://globaleconomicanalysis.blogspot.com/2011/03/pimco-dumps-all-remaining-treasuries-in.html
For those who don’t know, MISH is a deflationist, but he also likes gold. He got the 2008 crash right, but the ramping from March 2009, wrong.
Interesting. Mish spoke as though Gross bought treasuries instead of selling. I see paradoxes in quite a few opinion pieces last night and this morning.
Okay, I’m beginning to see. Quite a few investment advisors and managers have been warning clients away from bonds for many months (especially against long terms).
Meanwhile, there are people who’ve had faith in the economy as it is—”recovery” and all of that. They are more dependent on revenues from government. They are upset with Bill for selling down treasuries. Thus, the many misquotes and out-of-context quotes of Bill Gross.
Revenues for the various levels of government will continue to decrease. We’re still headed in the direction of a more inflated dollar (likely, IMO). Oil’s still high, and the dollar, low so far. ...only a few guesses from a history and macro- perspective.
Funny, BTW. If they were to stop making a lot of funny money, oil could go down a little before summer. But think about what that would do to a whole lot of incomes from government a little later. ...and the service economy, tourism, etc. IMO, the Fed. might even make more funny money because of Bill’s move to protect his investors.