Bill Gross Says Odds of Outperformance Have Plunged

Bill Gross, who defined his career by beating benchmarks in the bond market, says the days of outperformance are largely over. This according to an article in Bloomberg. “There are things to look at that still exist in the market that can generate alpha, although the probabilities of generating historical alpha in the same way are much less than they were,” Gross told Bloomberg in a recent interview. He attributes this in part to lower… Read More

Bill Gross Had the Right Idea

An article in Bloomberg by columnist Nir Kaissar offers insights on the career of “hall-of-fame” bond manager Bill Gross, who announced his retirement earlier this year after what the press hailed as a “messy last act” as manager of the Janus Henderson Global Unconstrained Bond Fund (since 2014).” “Gross made some big bets at Janus Henderson that didn’t pay off,” writes Kaissar, who adds that even though things didn’t go the way the manager would… Read More

A Bond Blowout Might Be Coming

The ten-year Treasury yield has risen to its highest level since March, reports a recent Wall Street Journal article, and bond guru Bill Gross says, “the move confirms a bear market.” “For some,” the article asserts, “the high of 2017, at around 2.63%, is a key level to watch for whether yields move higher still; for others, the move has already broken out of a downward channel for yields that has persisted for more than… Read More

Four Top Fund Managers Advise Caution in 2018

A recent Bloomberg article shares market insights from six of the world’s top fund managers, four of which are “asking their clients to be cautious in 2018.” The four with cautious outlooks are: Scott Minerd, chief investment officer at Guggenheim Partners (manages $240 billion), is betting that the┬ánext recession┬áis most likely going to occur in late 2019 to mid-2020. Minerd’s firm argues that current macroeconomic conditions are similar to those that existed 18-24 months prior… Read More

Bill Gross Likens Market to Retirement Community

In an interview with CNBC earlier this month, Janus Henderson portfolio manager Bill Gross said that the stock market’s “halcyon days are over” as central banks around the world take away the high levels of stimulus they’ve provided over the past ten years. “I’m not supporting a bear market,” Gross said in the interview, “but sort of a market where you move into an old-age retirement community where the pace of activity and prices behave… Read More

Is Bill Gross Still the Bond King?

As fund manager Bill Gross nears the third anniversary of his dramatic departure from PIMCO (which he co-founded and built into the world’s largest fund manager), his performance has been so-so, according to a recent article in Bloomberg. “Three years,” the article says, “is an important milestone for a money manager, because that’s when many financial advisers and institutional investors decide his track record is long enough to be meaningful.” While he managed the Pimco… Read More

Gross on Threats to Economy Going Forward

The quantitative easing that has occurred in the post-Lehman era has led to a situation, writes fund manager Bill Gross in a recent Barron’s article, where central bank balance sheets are replete with equities “in a desperate effort to keep global economies afloat.” Concurrently, he argues, more than $5 trillion of investment grade bonds “trade at negative interest rates in what can only be called an unsuccessful effort to renormalize real and nominal GDP growth… Read More

Bill Gross Forecasts Below-Par Economic Growth

In a recent article for Barron’s, fund manager Bill Gross argues that investors have “resorted to ‘making money with money’ as opposed to old-fashioned capitalism when money and profits were made with capital investment in the real economy.” This, he argues, will suppress real economic growth going forward. Gross explains that factors such as the replacement of workers with robots and trade-restrictive government policies present a “counterforce to creative capitalism in the real economy” which… Read More

Pimco’s New Investment Chief Bears Little Resemblance to Bill Gross

Dan Ivascyn, successor to Pimco co-founder Bill Gross as the firm’s investment chief, is overseeing what is characterized in a recent Wall Street Journal article as “a new direction taken by the California money manager as it recovers from the most tumultuous period in its history.” Gross resigned from Pimco in September of 2014 in the wake of much unrest. The article explains, “Hundreds of billions in client money followed Mr. Gross out of Pimco,”… Read More

Bill Gross Warns Investors to Preserve Capital

Under current conditions, warns bond guru Bill Gross, investors would be well served to focus more on preserving capital than earning high returns, according to a recent CNBC article. Given the huge amount of debt on our country’s books (upwards of $65 trillion), Gross says, “Our highly levered financial system is like a truckload of nitroglycerin on a bumpy road.” Manager of the $1.9 billion Janus Unconstrained Bond Fund, Gross feels that the Fed has… Read More