I was thinking about shorting the dollar, after all, it's had a good run. Then I saw that Bill Gross is going short the dollar and calling it his "trade of the year."
Not everyone thinks the dollar will keep on climbing. Billionaire Bill Gross of Janus Capital Group Inc. called his contrarian bet against the greenback “the trade of the year.” His short is premised on the spread between U.S. and European interest rates narrowing. Read more.
Gross has been a tremendous "fade" in the past few years and I don't think that has changed. His performance at Janus since he left Pimco has been not that great. Check it out:
On the other hand, the analysts note, Gross’s Global Unconstrained Bond Fund, flat year to date, ranks in the bottom quintile of similar funds so far this year. Its total assets slipped slightly to less than $1.45 billion at the end of February from more than $1.46 billion at the end of January, data compiled by Bloomberg show. The fund also has a flat return since Gross took it over in October, ranking it almost exactly in the middle of the pack compared with similar funds, according to data from Morningstar Inc.
So, probably no dollar rally for at least a while. I do think that the euro will hit parity against the greenback. Euros are definitely not getting "harder to get."
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