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Gross Move to Cash!
By Mike Conlon | December 18, 2009
Bill Gross, whom you’ve probably seen on CNBC or the like of PIMCO is known on the street as the “bond king“. He is undoubtedly one of the most astute bond investors on the planet. So you could consider him the EF Hutton of bond investing– when he talks, people listen”!
So I’m a little surprised that when it was reported that he increased his dollar holdings to its highest levels since the pre-Lehman Bros collapse last year, it wasn’t deemed more news-worthy. This is significant because what this tells the market is that Gross is anticipating an increase in interest rates, as he moves out of bond holdings and into cash.
Remember that when bond yields go up, prices go down. I have hinted around about the different reasons why the US dollar can strengthen this year without Fed rate increases. Should the Fed move rates sooner than later then that could be the dollar “double whammy”!
However, to take advantage of potential dollar strength, you need to take action in the forex market to realize gains.
If you are unfamiliar with forex trading, make this a New Years resolution to remember. Check out currency trading courses and find out why the forex market is the fastest growing market in the world.
Tags: bill gross, course, currenc, currency, currency trading, dollar, dow, fed, forex, forex market, fx, fxedu, Il, interest, interest rates, invest, investor, Mike Conlon, news, nfa, rate
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