Remember back in 2011: PIMCO boss Bill Gross famously bet against the US Treasury market on the grounds that as QE2 came to an end, interest rates would surge, because the Fed would no longer be in the market, placing a bid under US government bonds. The story of that bet is well known. Interest rates did not surge in 2011. They plummeted. By the end of that year, Bill Gross was apologizing to his investors. So why wasn't Bill Gross correct? After all, it would seem that Fed purchases of Treasur...
A Simple Lesson About Federal Reserve Bond Purchases That Could Save Investors A Fortune
Business Insider - 8 Dec 2012 23:37
Remember back in 2011: PIMCO boss Bill Gross famously bet against the US Treasury market on the grounds that as QE2 came to an end, interest rates would surge, because the Fed would no longer be in the market, placing a bid under US government bonds. The story of that bet is well known. Interest rates did not surge in 2011. They plummeted. By the end of that year, Bill Gross was apologizing to his investors. So why wasn't Bill Gross correct? After all, it would seem that Fed purchases of Treasur...
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