Bill Gross, PIMCO’s “Bond King” and manager of a mutual fund widely held in our client portfolios was interviewed just before Thanksgiving 2011 on Bloomberg TV. Among his comments he revealed how he personally is positioned with his investments. This part on how Gross is invested was interesting:
Bill Gross, PIMCO’s “Bond King” and manager of a mutual fund widely held in our client portfolios was interviewed just before Thanksgiving 2011 on Bloomberg TV. Among his comments he revealed how he personally is positioned with his investments. This part on how Gross is invested was interesting:
“I have a substantial amount of bonds. You know, not treasury bonds. In many cases, municipal bonds. But I have a decent mix in terms of global growth companies. I once suggested if we can successfully reflate, and that’s the barbell alternative on the optimistic side, then a Procter or a Johnson & Johnson or a Coca-Cola, a global company with half of their revenues coming from outside the United States, with dividends of three and a half to four percent and at least with some growth prospects, obviously much better than a treasury. But that’s a choice that you shouldn’t make with a hundred percent certainty. That’s a choice that you should make with the potential for a deflationary outcome, minimal as it might be in the minds of policy makers.”
Since I respect Mr. Gross and he manages one of our larger client holdings, it is gratifying to find his approach is very close the that taken by Trusted Financial for its discretionary managed account clients.
{loadposition bond_king}
