Market Review and Trends
3rd MasterYourFinance.com Gathering – 16 May 11
By Dr Wealth  •  May 16, 2011
US Bond Market Crash Dennis began the presentation with a report from PIMCO founder, Bill Gross. Bill Gross is commonly known as the bond king as he was an expert in bond investment and he had made a lot of money from it. His view was that the US bond market would crash. He reasoned that with QE 1 and QE 2, the Fed has been buying 70% of US government bonds. What happens after the Fed stops buying? The demand for US bonds is not sustainable. He had sold all US$28.6 bn worth of US bonds in his PIMCO Total Return Fund and he is actually holding a 4% short position on US bonds. He has 37% of the portfolio in cash which is unprecedented (less than 20% in the past). How will it lead to a financial crisis in 2012 Dennis added that the US government had ......
Read the full article
By Dr Wealth
Dr Wealth provides trusted financial education to individuals. We teach researched and actionable investment methods so that our graduates are successful in their investment journey and achieve market-beating returns.
LEAVE A COMMENT
LEAVE A COMMENT

Your email address will not be published.

*

Your Email Address will not be published
*

Read More Articles
More from thefinance