Saturday, May 09, 2009

PIMCO and the Friday Night Link Orgy

Ok, I've never really been too good at comparing two people who reminded me of each other. But I saw this recent image of PIMCO's Co-CIO, Bill Gross:



And I couldn't stop thinking about this guy:


If you can guess who this is and where the picture is from, you can have the next two days off. Maybe if his hair was combed over a little...

Anyway, I've been listening to Bill Gross' "Investment Outlook" podcast since 2005, when he was warning of some kind of housing bubble that would lead to a collapse of real estate followed by financials.

I even found out that one of the managing directors had sold his house and was renting before the prices fell.

That was Mark Kiesel, read his latest statement on what PIMCO is up to these days, as in 'where they're putting their money'. Might be something to consider, because it's kinda like if Warren Buffet announced what he's investing in while he's scaling in.

I say this is important because Bill Gross and PIMCO are somewhat open about their holdings, and vocal about how they should get paid for them. They have recently played Chicken with the Federal Government on bailing out GMAC (and won), and had predicted that Freddie Mac and Fannie Mae would get bailed out before that. But they did all this out in the open, in public through Bill Gross' Investment Outlook newsletter, on CNBC, in the Wall Street Journal, and so on.

They say that the Bond Market is more mature & sensible of all the Markets out there. If that's true, then PIMCO is the flagship and poster child of bonds (a.k.a. "credit"). There are some who think PIMCO, or Gross, has too much power (currently managing $800+ Billion). We are entering new territory these days, but I'd say it's a good idea to get behind PIMCO than in front of them.

Besides! Listen to the Investment Outlook newsletter. How can you distrust someone who sounds like Piglet?

And if you're an insomniac, 12 minutes of this recent interview with PIMCO's CEO might help:

Disclaimer: Just because this is a CNBC video does not constitute admission of actually watching CNBC or following anything they say on there. Dylan Ratigan, we miss you...good luck at MSNBC.
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