Bill Gross is single-handedly sinking the German DAX today along with the shares of PIMCO parent Allianz (down 6%) while boosting Janus shares 40%.

But that could just be the start. I would be selling bonds here.

US 10s

US 10 year yields

The other thing is, maybe these reactions in related shares aren’t over-reactions. Bill Gross knows the entire book at PIMCO and if he’s leaving and knows people will leave PIMCO and he can watch those positions get squeezed and then buy them back.

Also, there’s the PIMCO high income fund run by Gross and it trades at a 46% premium to NAV — that’s all Gross. Those clients are going to be scrambling to sell out/hedge.

And it’s not just Treasuries, everything Gross ‘liked’ is going to get crushed as everyone anticipates selling. Italian and Spanish yields are up 4-5 bps on the news.

If you don’t know, sell.