Gross Fund Has Lowest-Ever Treasury Allocation

Bond guru Bill Gross has been sounding bearish on U.S. debt in recent interviews, and The New York Times reports that in addition to talking the talk, he’s also been walking the walk. Gross’ flagship PIMCO Total Return Fund now has only about 30% of its assets in U.S. government debt, the lowest level in its 23-year history, according to the Times. That’s down from about 50% just nine months ago. Gross is wary of… Read More

Hussman Defensive as More Credit Woes Loom

John Hussman is continuing to maintain a defensive position on stocks, saying that two dangers — an overbought, overvalued market and the coming to roost of a second wave of credit losses — mean investors should be cautious. “It is important to note that our current defensive position is driven by the present combination of overvalued, overbought, overbullish conditions, coupled with upward yield pressures, and is independent of my larger concerns about the potential for… Read More

Dreman on Fighting Inflation

As the past couple years have shown, it can be risky to own stocks. But, Forbes‘ David Dreman says, steering clear of equities is also a gamble. “Is it risky to own stocks? Sure — it always was,” Dreman writes in his latest column. “But it’s also risky not to own them. If you have all your money in bonds you run the risk that inflation will come back and ruin you. I consider inflation… Read More

Siegel on Inflation, Interest Rates

Author and Wharton Professor Jeremy Siegel says he thinks the Federal Reserve will likely raise interest rates “modestly” by this coming spring — earlier than many expect. But, he tells Bloomberg, it will be some time before we see significant inflation. Siegel says that he thinks inflation won’t be much of a threat for a couple years, and that when it does kick in, it won’t come close to the double-digit figures some have predicted.… Read More

Dreman: Correction, Major Inflation Coming

Noted contrarian investor and author David Dreman says a correction is coming for the stock market — but he says investors are best off just holding their ground and riding through it. In an interview with Fox Business, Dreman says it’s too hard to tell exactly when the correction will occur. And, given his belief that stocks are headed higher over the longer haul, he says investors shouldn’t try to time the correction. Dreman also… Read More

… but Buffett Steering Clear of Bullion

While one of the world’s best investors, John Paulson, is making a big bet on gold, another — Warren Buffett — is looking elsewhere. David Pett of Canada’s Financial Post notes that Berkshire Hathaway’s latest holdings disclosure “indicates that the world’s greatest investor isn’t loading up on gold or precious metals. Indeed, he lists no mining companies among his holdings.” The lack of gold in Berkshire’s portfolio is notable, Pett says, because Buffett has said… Read More

Sonders, Hulbert: Inflation Fears May Be Overblown

One of the biggest fears in the investment world right now involves inflation. And, given the huge sums of money the government has pumped into the economy in the past year or so, the fears seem on the surface to be warranted. But two top strategists, Charles Schwab Chief Investment Officer Liz Ann Sonders and Mark Hulbert of MarketWatch and Hulbert Financial Digest, say a number of factors are conspiring against major inflation — for… Read More

Buffett: Inflation Coming, Congress Must Step Up

In an Op-Ed for The New York Times, Warren Buffett writes that significant inflation problems could be headed our way, and that it’s up to Congress to keep it from growing out of control. “The United States economy is now out of the emergency room and appears to be on a slow path to recovery,” Buffett writes. “But enormous dosages of monetary medicine continue to be administered and, before long, we will need to deal… Read More

Bernanke on the Exit Plan

There has been much speculation on what impact the government’s massive spending and lending programs will have on the economy and stock market, with fears of significant inflation at the forefront of the discussions. Today in The Wall Street Journal, Federal Reserve Chairman Ben Bernanke addressed those concerns, saying that he is confident the Fed has the tools it needs to sop up excess liquidity in the market when the time is right — though… Read More