“Perhaps when yields, carry and expected returns on financial and real assets become so low, then risk-taking investors turn inward and more conservative as opposed to outward and more risk seeking. Perhaps financial markets and real economic growth are more at risk than your calm demeanor would convey,” Gross went on to say about Bernanke.
Those may sound like fighting words, but chances are Gross will find a way to deal with whatever the Fed throws at him and BOND investors will benefit.
BOND is lagging the Barclays US Aggregate Bond Index for the trailing month but outperforming year to date. For the trailing year, the PIMCO ETF is up 5.6% versus 0.8% for the benchmark.
PIMCO Total Return ETF
ETF Trends editorial team contributed to this report. Tom Lydon’s clients own shares of BOND.