Pimco Says U.S. Recession Possible in Next Three to Five Years

In a report outlining its market outlook, Pimco said it sees the potential for a recession hitting over the next three to five years. This according to a recent article in Financial Advisor. Forecasting a chance of “less market-friendly central banks,” the asset manager advised clients to reduce the riskiness of their corporate debt holdings and limit exposure to the euro region’s peripheral countries,” the article reports, adding that three Pimco executives say a U.S. recession… Read More

Pimco Adviser Says Market’s Lack of Fear is Scary

As many expect the current bull market to last longer, Pimco global economic adviser Joachim Fels recently told Bloomberg TV, “The fact that the fear is gone is the main reason why we should be worried.” Fels argues that interest rates could rise faster than expected, pushing up government bond yields, and inflation could bump up. The fact that fear is at a low, he says, “means most investors are now pretty fully invested and… 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

Gross, PIMCO Shifting into Equities

Bond giant PIMCO is making a move into equities, including equities in Europe, according to co-Chief Investment Officer Bill Gross. While some European countries face trouble going forward, Gross tells CNBC that “corporate equities … in terms of valuation, are selling at very low P/E ratios and in some cases might be perceived to be almost as safe, or almost as secure as the sovereigns themselves, because of their international exposure and their private nature”.

Gross: Time to Grow Up

In his latest Investment Outlook, PIMCO’s Bill Gross calls on “children of the bull market” to grow up, and goes a bit deeper into the concept of the “new normal” that he’s discussed previously. Gross says that there has been a significant break in the growth pattern that many investors have grown used to over the past several decades “because of delevering, deglobalization, and reregulation. All of those three in combination, to us at PIMCO,… Read More

Gross on Haircuts, Shared Burdens, and those Green Shoots

In his latest Investment Outlook column on bond giant PIMCO’s web site, Bill Gross says that the recent crisis — and the government’s response to it — has changed the financial landscape, and that investors must be cognizant of the new economic and investing world that has been created. President Obama’s comments on the recent bankruptcy announcement of Chrysler, Gross says, have highlighted Obama’s populist streak. And, while he doesn’t seem to be criticizing that… Read More

Gross: Investing “Revolution” Is On

In his April market commentary on PIMCO’s web site, bond guru Bill Gross says that we’ve entered a new world of economics and investing, one in which “there should be no doubt that the bull markets as we’ve known them are over and that the revolution is on. Investing is no longer child’s play.” Gross says that the future of investing will depend on the future of the global economy, and the future global economy… Read More

Gross: Be Bold — But Don’t Nationalize Banks

PIMCO’s Bill Gross says that the U.S. government needs to be bolder in its handling of the financial crisis — and says that bank nationalization is not the answer to the problem. “The U.S. and global financial systems require credit creation and foreclosure prevention, not bank nationalization as currently contemplated by some,” Gross writes in his latest market commentary on PIMCO’s web site. “Trillions will be required in the U.S. alone and it is critical… Read More

PIMCO’s Gross on Shadow Banking System — and the Key to Getting out of The Crisis

While policy makers continue to debate what is the best way to halt the country’s financial crisis, “bond king” Bill Gross of PIMCO says it is clear what needs to be done. “The remedy for this deflationary delivering and mini-depression is simple and almost axiomatic,” Gross writes in his latest commentary on PIMCO’s web site. “Stop the decline in asset prices. If that can be done, the real economy will level out as well.” Gross… Read More

Pimco’s El-Erian: Beware of Value Traps, Seek Catalysts

Pimco Co-CEO Mohamed El-Erian tells CNBC that “every investor should go back to the basics” in 2009. According to El-Erian, investors need to focus on “diversified asset allocation, good implementation vehicles, and solid risk management”. El-Erian believes equities could lag until investor confidence improves and warns that some investments could be value traps — meaning their attractive valuations alone aren’t enough reason to invest in them and that they could fall further. Instead he says… Read More