Sunday, January 25, 2009

Bill Gross on Bond Investments and Inflation

The most important info I heard today on Bloomberg was the opinion of Bill Gross on bond investments. I invest in PIMCO Total Return Fund (PTTRX) managed by Bill Gross and follow Bill Gross' commentaries.

It's crucial to know when to decrease the bond investments because of creeping inflation. Bill Gross estimates that the US may start seeing the signs of inflation only in the end of 2010. The most important signs of inflation in his view are employment data and industrial capacity utilization.

Given the prospect of US government printing money to finance its projects, hearing that the inflation is not expected till the end of 2010 is reassuring.

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