Bond Hatred Erupts

Bill Gross has left Pimco, asserting that he is going back to being a fund manager rather than an organization manager. There is muttering that he quit rather than be fired for yelling at his subordinates, but whatever. Interestingly, this change at the largest bond fund in the world has resulted in a fresh wave of bond hatred, claims that Bill is “getting out just in time” and assertion that Pimco will now be dumping its bond holdings.

I was getting concerned that people were looking at the bond charts and the economic prospects rather than shorting on emotion and Fed forecasts, both equally unreliable, and I am glad to see that this is not the case.

In stocks, my momentum portfolio from August 15 is down only about 0.5% so there has been no real impact from last week’s sell-off at this point. The true believers are keeping faith, the two gainers in the group are FB and TWTR – the latter up nearly 15% no less, while sporting a 30x price/sales ratio. I expect this virtual portfolio will lose 80-90% of its value at the bottom.

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