Wednesday, April 13, 2011

Time to Dump Treasuries?

News flash - the reckless government spending, and big government is bankrupting the United States!

Yeah, ok... so that's not news. But this might be.

Bill Gross, one of the chief investment officers at bond giant PIMCO, is betting against the United States. Seeing continued weakness in the dollar and increased inflation, along with a lack of buyers for treasuries once the treasury stops buying its own debt, PIMCO is selling its treasury holdings.

In addition, investors have been pulling money out of PIMCOs Total Return Fund for the past 5 months, reaching $1.59 billion in outflows last month alone.

Whether you see hard times ahead for the U. S. or not, this move cannot be ignored since PIMCO is one of the largest investors in the treasury market. That makes this move significant in and of itself.v

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