Thursday, March 10, 2011

Bill Gross: "Who Will Buy Treasuries?"

This Zero Hedge piece on Bill Gross is making the rounds on the blogosphere and elsewhere, including here yesterday:  http://www.biiwii.com/analysis.htm.  Today it showed up on Facebook in a post by a friend of mine.  My answer to Mr. Gross?

"Who? Me... I'll take the other side of the trade from Mr. Gross to collect a few dividends as the herd gets roiled in commodities. The time to be selling UST's was when yields were in the tank. Now, at a critical and potentially limiting trend line for yields he scares the public out, as they would in essence, sell at the bottom? Bill Gross, how convenient to have the 'bond king' talking all negative right now."

I'll just leave it at that.  It is convenient is all.  A couple years ago it was Larry Summers helping put the herd INTO UST's (after rates had tanked, with positive words about the quality of UST's) when they should have been buying assets.  Now?  Another err, influential figure's words may publicly scatter the herd into assets.  Wash, rinse and fucking repeat.  The herd will always be the herd.

Edit (1:05) Chart added for emphasis, and some wording cleaned up.