Everybody talks their book, especially Bill Gross. The world’s largest bond fund manager has been talking down Treasuries for some time. Now it seems like he is putting his portfolio where his mouth is. The timing is interesting because it comes in anticipation of the end of QE2. While some pundits foresee little effect to the end of QE2, others see a spike up in yields coming. Gross now seems to be in that camp. In addition it comes at a time when the political agenda surrounding the budget and debt limit are hitting a fever pitch. In any sort of historical perspective yields remain at very low levels. Most investors have not experienced a secular bond bear market like that seen in the 1970s. Maybe it is time to familiarize yourself with that episode. In today’s screencast a look at Bill Gross’ recent portfolio moves.
Items mentioned in the above screencast:
With the end of QE2 in sight Bill Gross is talking his book. (The Reformed Broker)
The end of QE2 and the budget negotiations in Washington. (Mean Street)
Monthly price chart of the 10-year Treasury yield. (StockCharts)