After being very negative on Treasuries in recent months the big back-up in yields has enticed the world’s biggest bond manager to begin nibbling. He says 3.7/4.0% is an attractive entry level for Treasuries. One can assume that he has already helped himself to a portion before passing us the ladle. He usually does.
Gross sees slow growth of 1.2% a year ahead for the US economy (I agree) and says double digit annual returns in stocks are a thing of the past. Don’t forget, Gross told us 6 years ago that the Dow was going 5,000. Instead it went to 14,000, so take his stock views with a grain of salt…
A more stable bond market should promote risk-taking which theoretically should undermine the dollar.
