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Pimco Starts Buying Us Treasuries

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http://online.wsj.com/article/SB10001424052748704575304575296504254560156.html?mod=WSJ_business_whatsNews

Bond Giant Pimco Buys Treasurys in Recent Weeks

BY MIN ZENG AND MARK GONGLOFF

After months of deriding U.S. Treasury bonds, Bill Gross and his fund managers at Pacific Investment Management Co. have switched sides.

Pimco had been the biggest and most vocal of a large group of Treasury bears, predicting that Treasury prices would fall, and yields rise, as the U.S. economy strengthens and the government borrowing binge continued.

In the opposing camp was Pimco's chief rival, BlackRock Inc., which said in March that it was buying up Treasurys.

So far, BlackRock's view has proven to be the winning bet. The debt crisis in Europe sparked a global flight to safe-haven assets such ...

Maybe RB was right - the dollar is the right place to be?!?

Personally, I think it's a dollar squeeze. The long term fundamentals for the US are horrific.

Edited by AvidFan

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http://online.wsj.com/article/SB10001424052748704575304575296504254560156.html?mod=WSJ_business_whatsNews

Bond Giant Pimco Buys Treasurys in Recent Weeks

BY MIN ZENG AND MARK GONGLOFF

Maybe RB was right - the dollar is the right place to be?!?

Personally, I think it's a dollar squeeze. The long term fundamentals for the US are horrific.

They are buying US treasuries because they believe in Armageddon for the short term. Also, USD will rise substantially at the first stage of crash/armageddon. After the fallout, then you are right, the USA has appalling problems and the USD is sure to weaken considerably thereafter - possibly $20TRILLION national debt by 2015!!!

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http://online.wsj.com/article/SB10001424052748704575304575296504254560156.html?mod=WSJ_business_whatsNews

Bond Giant Pimco Buys Treasurys in Recent Weeks

BY MIN ZENG AND MARK GONGLOFF

Maybe RB was right - the dollar is the right place to be?!?

Personally, I think it's a dollar squeeze. The long term fundamentals for the US are horrific.

I agree that the US balance sheet looks awful. I think their ability to turn things around is what keeps the $ going. The US have the resources, the right aged population and the right industries to turn things in the right direction. The Eurozone, on the other hand is a fragile political union with a lot of dead-weight (PIIGS) that the others cannot and will not subsidise for much longer.

The old adage still applies, when America sneezes Europe catches a cold. America has flu at the moment.

The bond markets are a very good barometer of where the market is headed and I have invested quite a bit of my retirement fund in Bill's Total Bond Fund and it is up around 4% YTD which is better than most savings accounts and almost as safe.

$ down today on the good news in Europe (what good news they cried?):

Euro = 1.21018

Pound = 1.46436

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Fund Manager(s): William H. Gross

Top Ten Holdings4 as of 12/31/2009

United States Treas Nts 0.75% - 11/30/11

Irs Eur R 6me/3.0 06/16/10 Brc - 06/16/15

United States Treas Nts 1% - 10/31/11

United States Treas Nts 1% - 07/31/11

Irs Eur R 6me/3.0 06/16/10 Dub - 06/16/15

United States Treas Nts 1% - 09/30/11

Irs Eur R 6me/3.0 06/16/10 Glm - 06/16/15

BRAZIL NTN-F - 01/01/12

United States Treas Nts 2.625% - 12/31/14

United States Treas Nts 2.75% - 11/30/16

22.47% of Portfolio

More about Composition

% of Total Investments as of 03/31/10

Allocation Breakdown‡

Short-Term Instruments 41.7%

Corporate Bonds & Notes 23.8%

U.S. Government Agencies 14.0%

U.S. Treasury Obligations 7.3%

Foreign Currency-Denominated Issues 5.2%

Other 8.0%

Edited by Realistbear

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  • 261 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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