Posts filed under “Fixed Income/Interest Rates”

What Worries Bill Gross . . .

Pimco’s Bill Gross is nervous:

1) The current rather mild U.S. recovery has been driven by asset appreciation/consumption and not employment or capex growth.

2) Future growth is dependent on additional asset
appreciation in real estate and stocks if Asia continues to absorb much
of our investment and many of our jobs.

3) Recent asset appreciation has been set ablaze by
several fiscal/monetary pumps displayed on page 2 with 5-year real
rates being the central driver/gasoline can.

4) Tax cuts are a thing of the past and 5-year TIPS yields can theoretically decline only 60 basis points or so more.

5) The reason why intermediate/long TIPS have an interest rate floor is that if we approach potential deflation, investors risk losing money on a government guaranteed investment. The same concept applies to homes, stocks, and other inflation-adjusting assets without
government guarantees.

6) The Fed may soon be out of fuel, despite hints of
Bernanke-style helicopter money. Stocks and houses are already at low
yields and high prices reflective of European economies nearing
Japan-style liquidity traps.

>

Source:
Fire!                                                       
Investment Outlook                                    
Bill Gross | July 2005                                    
http://www.pimco.com/LeftNav/Late+Breaking+Commentary/IO/2005/IO+July+2005.htm      

Category: Fixed Income/Interest Rates

Fed Minutes

Category: Federal Reserve, Fixed Income/Interest Rates, Inflation

A World of (mostly) Flattening Yield Curves

Category: Economy, Federal Reserve, Fixed Income/Interest Rates, Inflation

2 Studies on the Flattening Yield Curve

Category: Federal Reserve, Fixed Income/Interest Rates, Inflation, Technical Analysis

Explaining Yield Curve Inversions

Category: Economy, Federal Reserve, Fixed Income/Interest Rates, Inflation

Inverted Yield Curve: Its different this time (not)

Category: Federal Reserve, Fixed Income/Interest Rates, Inflation, Technical Analysis

The “greatest irony” is that he is called the Maestro

Category: Federal Reserve, Fixed Income/Interest Rates, Inflation

Ramifications of Eliminating the Mortgage Tax Deduction

Category: Fixed Income/Interest Rates, Politics, Real Estate

Housing Starts Soften; Builder’s Bear Market?

Category: Fixed Income/Interest Rates, Real Estate

Corp Bonds 1830-2005

Category: Fixed Income/Interest Rates