Gross, who manages $261 billion for the Pimco Total Return Fund (PTTRX), said in a Twitter post that risk markets are vulnerable as the “monetary bag of tricks empties.”
But wait... I thought we were in an actual economic recovery? So say all the talking heads at the WSJ, CNBS, pMSNBC and more.
And I thought The Fed (and other central banks) were simply about providing liquidity and insuring the functioning of the financial system -- not playing tricks on people.
But just when I think it might be a good time to buy some sticks, er, stocks, bill comes into the room with a bit of truth and throws a bucket of ice over everyone's head.
Well well well.....
Of course you have to wonder if Goldman is as "prescient" as they've been in the past with this comment...
A challenging economic environment has made Goldman Sachs Group Inc. analyst Noah Weisberger recommend shorting the S&P 500, or betting on further declines. He has a target of 1,285, or 3.1 percent below yesterday’s close.
“With incremental U.S. monetary policy on hold, the market will need to confront a deteriorating growth picture near term,” Weisberger wrote.
Listening to anything Goldman Sachs says in a place where "ordinary people" can hear it has been a historically awful decision, often leading to you getting your face ripped off by the resulting move in the opposite direction. After all, they're (in)famously "plugged in" to information that nobody else gets -- at least not at the same time other people get it. (As are, for that matter, are the other big banksters.)
Maybe this time their call will prove good. But maybe -- just maybe -- they also need someone to sell what they're buying -- at least in the short term.
Where We Are, Where We're Heading (2013) - The annual 2013 Ticker
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