Something doesn't smell right with the Bill Gross comments to CNBC. This guy, along with all of his PIMCO pals--are filthy rich. But, PIMCOs assets have hit historical highs, which has resulted in monster revenues for the firm. And, every time this guy or the other PIMCO "gurus" get on the teevee and make comments about recessions and depressions and all around mayhem, it causes uncertainty, which then pushes investors into more stable instruments--like BONDS.
Here's what I don't get: How is this any different than when an analyst says something about a stock and his or her firm has an investment in that stock?? There's a conflict of interest, right? A similar situation was when Warren Buffett wrote an Opt-ed piece in the New York Times saying this is the best time to buy equities--after he publicly acknowledged that he just went long in the market! It would seem to me that he was trying to sway people into equities to lift valuations--thus, fatten his own wallet.
Now, Mr. Gross pulls the same stunt and his logic is we need another stimulus or gimmick like Cash for Clunkers to keep the U.S. economy from falling backwards. Are you serious?
But, we all know, pretty boys like Bill Gross or folksy fellas like Warren Buffett get a pass when it comes to any of the conflict inquiries because the powers-that-be know that any type of questioning would damage investor confidence and cause a seriously negative ripple effect in the markets--in the U.S. and around the world.
Talk to you,
Todd M. Schoenberger, Managing Director
LandColt Trading, Inc.