The latest PIMCO newsletter suggests that 2010 will be year of caution and change. And yet he gives ample suggestions to the coming holocaust in financial markets if things do not go as planned.
The latest US and UK deficit is graph straight for the records. It is almost eclipsing the vertical rise of equity markets in 2009.
What amazes me most of all is that politicians can be bought so cheaply
Gross once again underscores his point, that 2010 will be a year to sell US and UK bonds. While FED is counting on private institutions to take up the cheque once the stimulus fades in March, here is the largest bond market maker, shaking off any dreams that FED might be harboring.
He makes quite an astute comparison to passengers having a choice in flying any airline in 2009 and gladly chose “United” in 2009. That may no longer be the case in 2010.
When a man like Gross begins to say “distressed about american economy”¦”, it should awaken the sleepiest bear out there and start flexing.
When someone as well connected as Gross sticks his neck out and suggests that March could be the beginning of the end for US easy monetary policy, one should sit back and definetly take note. Interestingly, the qualification added by using the word “attempted” next to “exit” suggests that Gross thinks that the Fed may be making a misjudgment which will then need to be reversed with a new policy of more accommodation.