bill gross on the wings of an eagle
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8/11/2019 Bill Gross on the Wings of an Eagle
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Perspectives provided by: PIMCO
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On the Wings of an Eagle
Global economies and their artificially priced markets are increasingly
at risk, but the unwinding may occur gradually, says PIMCOs BillGross.
By Bill Gross | Posted: 12-03-13 | 08:48 AM | Email Article
Ive always liked Jack Bogle, although Ive never met him. Hes got heart, but as hes
probably joked a thousand times by now, its someone elses; a 1996 transplant being theLOL explanation. Hes also got a lot of investment common sense, recognizing decades ago
that investment managers in composite couldnt outperform the market; in fact, their alpha
would be negative after fees and transaction costs were factored in. His early business model
at Vanguard promoting index funds was a mystery to me for at least a few of my beginning
years at PIMCO. Why would most investors be content with just average performance, I
wondered? The answer is certainly now obvious; an investor should want the highest
performance for the least amount of risk, and for almost all measurable asset classes, index
funds and many ETFs have done a better job than almost all active managers primarilybecause of lower fees.
The almost all caveat is the
reason I can write so freely and
with such high praise for Vanguard.
I am, after all, supposed to be promoting PIMCO in these Investment Outlooks, and PIMCO is
a $2 trillion active manager with lots of long-term consistent alpha. Jack marvels about what
he himself labeled in a recent Morningstar interview the PIMCO effect. To paraphrase his
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of this article may be reproduced in any form, or referred to in any other publication, without express written
permission. PIMCO and YOUR GLOBAL INVESTMENT AUTHORITY are trademarks or registered trademarks of
Allianz Asset Management of America L.P. and Pacific Investment Management Company LLC, respectively, in the
United States and throughout the world. 2013, PIMCO.
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vandy73
Dec 4 2013, 8:22 AM
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This piece is too technical and arcane to be relevant to Morningstar
readers.More like free association,imho.
timbo11
Dec 3 2013, 10:28 PM
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Bill, best of your articles that I have read. Aside from the folksy but
expected marketing pitch, you paint enough detail to identify a
conundrum: policy makers are not going to leave things alone.
Mohamed calls it a T in the market trajectory forced by government
policies. Whether for good or ill is to be determined. I call it
micromanaging the economy. If that is what Mohamed and you
mean, then I agree that is the biggest threat. I also look for signs of
a whip saw up and then down like 2005-2008.
Also, too big to fail bankers are busy investing the Fed assets in
their coffers in ways that cut out retail and institutional investors.
High speed trading infrastructure, distressed residences for cash,
dark investment pools, moving markets to reap gains. Mortgages
and loans do not excite bankers right now (too much risk, too little
profit).
jmasdenver
Dec 3 2013, 5:50 PM
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A load of baloney! Gross is just trying to prevent more billions of
dollars from flowing out of PIMCO funds and saying to the suckers
that remain, "just wait, I'll be right eventually". Yeah right, maybe
in 2016!
Matthew9
Dec 3 2013, 5:44 PM
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bee we haven't had even a 10% correction in ages, so 15% is
certainly not hard to envision. I'm not sure EM in general would fall
anymore than domestic markets but China falling more certainly
wouldn't come as a surprise.
beecnul8r
Dec 3 2013, 3:05 PM
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Well, overall sounds like the Fed especially and other central banks
are going to cause some severe reactions the moment they
stop/slow the $85 billion a month boost. If businesses can't justify
expansion with these extremely low borrowing rates how can
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0LikeLikeanyone expect support for an already oversold Market? Makes me
think we are already well into a bubble that will burst with a 15%
decline in the S&P and perhaps more for emerging markets and
China.
DBSMichigan
Dec 3 2013, 2:52 PM
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Least verbose piece I've seen from Bill Gross in a while.
Hilo99
Dec 3 2013, 2:31 PM
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"Front end maturity" meaning- ? Short duration bonds?
1-7 of 7 CommentsOldest First| Newest First
g g p g p
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