Friday, June 08, 2007

Bond guru Gross turns bearish

PIMCO manager says strong economic growth worldwide should push up interest rates and yields.

By Grace Wong, CNNMoney.com staff writer
June 7 2007: 9:29 PM EDT

NEW YORK (CNNMoney.com) -- Legendary bond investor Bill Gross expects strong economic growth worldwide to push up global interest rates and put a damper on the Treasury market.

A long time bond market bull, the PIMCO manager says he's now a "bear market manager" and has raised his forecast range for the benchmark 10-year U.S. yield to 4 percent to 6.5 percent. That's up from last year's forecast range of 4 percent to 5.5 percent.

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PIMCO's Bill Gross

Gross, manager of the world's largest bond fund, discussed his economic and investment view at an annual PIMCO event. His comments were made available on PIMCO's Web site Thursday.

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Lunch is for wimps

Lunch is for wimps
It's not a question of enough, pal. It's a zero sum game, somebody wins, somebody loses. Money itself isn't lost or made, it's simply transferred from one perception to another.