Yes, the fighting’s on at Pimco, the $2 trillion money manager. The two leaders of one of America’s most powerful money firms, Bond King Bill Gross and CEO Mohamed El-Erian, sound like parents at war on a television sitcom. One an aggressive optimist. The other a pessimist who even calls himself a “worrywart.”
What should you do? Go to your room and put the covers over your head? Maybe. If these guys can’t get their act together on a strategy going forward, if they seem to be fighting about what to do with two trillion dollars, what chance do you have? Little to none.
Seriously, this is crazy-making. What a year. Pimco’s squabbling parents are a microcosm of the bigger picture. Stocks hot. And unpredictable. Volatile.
Stay tuned. In next week’s episode it will get worse. More fighting. Everybody jumps in. The volume ratchets up. Congress returns. Politicians go ballistic with war, the deficit, debt ceiling, immigration, health care, government shutdown and more parental stuff in a totally dysfunctional uncertain world.
This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.