Bill Gross of PIMCO on CNBC
Notes:
Finishing a period of
1) leverage
2) lower corporate taxes
3) lax regulation
This is an intergenerational change
He's not buying government paper but looking at corps
Too much flight to quality
Fed easeings lowers yields too much
Corps
CAT and HP – yield 6 to 8 !!!
A rated
Currently in banks, mortgage backed instruments that Govt is buying
Bank preferreds at 10+%
Good chance of stabilization now, improving asset prices, real growth
More government, govt fist vs. invisible hand, regulation increases, profits no longer due to leverage,
Risk will be rewarded
His thoughts laid out here PIMCO - Investment Outlook: Dow 5000 Gross Dec 08:
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