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Weekend Reading: Pimco Edition

September 5, 2008 RSS Feed Print

Check out Pimco's Bill Gross's always interesting (and currently depressing) riff. This time, it's on Jim Cramer's mantra that there's always a bull market somewhere. The gist:

So the lesson must be to go forth and find the bull market, wherever it is. Almost always—but not now because in a global financial marketplace in the process of delevering, assets that go up in price are rare diamonds as opposed to grains of sand.

Also, note that the giant bond house also just named emerging market guru Mohamed El-Erian to the CEO post, taking over for co-CEO Bill Thompson when he retires at the end of the year (El-Erian will be co-CIO with Gross). See my June Q&A with El-Erian on risks in the economy here.

Tags:: global economy,; stock market

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Sounds to me like the classic definition of inflation: Too much money chasing too few goods (that is, "investments" that are not already bid up beyond their real worth and any likely upside.)
By the way, did you know that this is a result (in the USA, anyway) of insufficient taxation at the high end? Ever wonder what mega-rich people do with extra dollars from tax cuts?
They invest in markets and bid things up---eventually to a bubble---even in foreign markets.
Gross is witnessing exactly that more or less worldwide, yet the US government has doubled its debt.

of 4:31PM September 05, 2008

Weekend Reading: Pimco Edition

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