I do not have a long post tonight. I am merely posting the monthly newsletter from Bill Gross of PIMCO, the world's largest bond fund. Now I think he is a very smart guy. I certainly hope so as I have good chunk of my retirement in his hands. In any event, Mr. Gross seems to think that all the fiscal stimulus this year and quantitative easing will come home to roost in 2010. He also has some bad news for the carry trade folks (it is mostly just about playing big dollars and leverage to take advantage of interest rate differentials between countries - but don't tell anyone), which if you do not understand, join the club. Hopefully it has little impact on the regular folks like us. [Okay, I say hopefully, but if the carry trade bets go bad, which I think they will this year or next, it will have an impact, probably significant, on anyone invested in the market. So perhaps you do need to worry about it and should worry about it, but my point really is that individuals have little they can do to stop it and it is a very difficult market to understand.]
I also like Bill's prose and his understanding of some things not so financial, like literature. Enjoy the read of his newsletter. I did.
http://www.pimco.com/LeftNav/Featured+Market+Commentary/IO/2010/Let’s+Get+Fisical+January+2010.htm
Disclosures: None.
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