“Bond King” (Ha!!) Bill Gross of Pimco is at it again with what could end up to be his greatest BAD CALL of all time.
Remember last year when he said that Treasuries were going to collapse once the Fed stopped their QE 2 program? And his now infamous tweet, “Who’s going to buy them now?” which exposed his utter lack of understanding of how rates are set. His massive short Treasury position that turned out to be a HUGE loser. (MMT had it right on the money!)
As an aside, Paul McCulley, who used to be Pimco’s chief economist until two years ago when he retired, understood the monetary system and was probably the brain behind much of Gross’s success because now that he’s gone, Gross is pretty much on the wrong side of everything. But I digress…
Well, here’s Gross’s latest call. In a piece he wrote on the Pimco website he said…
“The cult of equity is dying.” (Calls equity investing a CULT???? This guy is off the deep end.)
My guess is this could end up to be the greatest bad call since the 1979 Business Week cover that proclaimed “The Death of Equities.” (Even sounds similar.) Just for fun, have a look at how this whole, "death of equities" thing played out.
Business Week August 1979 cover
And here's what the market did...
