Bill Gross Quotes (47 Quotes)

The fact is that GE is a conglomerate financed by a money machine -- its subsidiary GE Capital -- but, unlike Berkshire Hathaway, its foundation is vulnerable because its survival depends upon the confidence of outside investors,

If he continues to believe that a flat curve is indicative of economic weakness, the hand-off may be one in which we stop at 4.5 percent.

Human nature means that institutions at some point lose their sense of mission. That sense of vulnerability drives Pimco.

By the time 10-year and 2-year Treasuries reach parity, as is almost the case now, the economy is typically slowing and the Fed is at or near the end of its tightening cycle, ... We are due for what appears to be a 2 percent or less Gross Domestic Product growth rate in 2006, a rate sure to stop the Fed and to induce eventual ease at some point later in the year.

Americans now know that housing prices can go down and they can go down by 10, 20, 30, and in some cases, 40 or 50 percent. We know they can go down. But five years ago, we thought they could only go up.

We can have a big impact not only in the U.S. , but in the developing world.

This works because merchants have a high cost of customer acquisition, and we lower it, ... We bring them customers with their wallets open.

What it suggests this time is a 2 percent economy in 2006, as opposed to a recession.

At some point down the road, in a dynamic economy such as the U.S., we should be returning to a more normal shape. That means ultimately short rates and the front end of the curve will trade at lower yields than long rates.

What we're doing is kind of expanding upon the neighbor concept.

If the economy slows down, if housing moves back down, then at some point late in 2006 the Fed starts to lower rates. That's why a 10-year note yield at 4.55 percent is a decent value as opposed to overvalued.

The market can move for irrational reasons, and you have to be prepared for that, ... you need to make big bets when the odds are in your favor -- not big enough to ruin you, but big enough to make a difference.

They will cut until they reach the point that the average consumer finally cries 'uncle' and starts to take on risk.

Is it any wonder that in the space of the last six months we have had headline speeches promoting the dangers of deflation only to be followed by fears of accelerating inflation

Some people say farmers have always helped farmers, People say we're expanding the definition of neighbor.

When you have kidney stones, you don't give much of a damn about the view,

With all this consumer debt, business debt, government debt, smaller movements in interest rates have a magnified effect... a small movement can tip the boat.

Bernanke and company are trying to reflate the economy with almost stated objective of inflation at 2 percent and higher in order to provide some type of safety margin for a future recession. That's where they want to go.

It's not a great time for high yield.

Dr. Fred Pescatore says it's time to eat like a caveman you know, more veggies and grains, less meat and real fruit rather than juice, because overall fruit juice is only slightly healthier for you than soda and often has more calories. ... Get out on the track and put your foot to the floor and your heart into your mouth.

Beyond that, some Treasury market participants worry that with recovery, inflation will pick up. In a note this week replete with (groan) Star Wars ... current long bond yields do not reflect this risk.

If Fed Funds were expected to rise in the future, the curve would be positive with intermediate and long bonds requiring higher yields as a cushion against accelerating short rates. If the Fed were expected to lower rates, a flatter, even inverted curve m

A bullish orientation towards the front-end of the curve therefore should begin to dominate bond strategies, combined with an avoidance of anything that carries those low-risk premiums that Greenspan finally diagnosed, ... Those assets include real estate, equities, high yield, corporate, and some areas of emerging-market debt.

if those people are holders of government bonds based upon a benign outlook for inflation, they had better cash some of them in, especially at today's 4.0 yield for 10-year Treasuries.

I view him favorably, especially his views on inflation targeting,

Even our attorney in Valley City is a volunteer.

It is in the best interest of the company, its employees and investors, that we not proceed with the offering during this volatile time,

There's little doubt...that the bond market's salad days are over,

The market needs to yield close to 3.5 percent before it approaches fair value, and that means Dow 5,000,

Too much debt, geopolitical risk and several bubbles have created a very unstable environment which can turn any minute, ... More than any point in the past 20 or 30 years, there's potential for a reversal.

The Fed knows that the economy is in terrible shape and that they must bring down short-term rates to the level of inflation. If inflation keeps coming down, the Fed, to a certain extent, has to chase inflation.

Debt and lack of pricing power is a dangerous combination, ... Gasoline and a match fall into the same category.

Without a blockbuster of a program in his second term it is unlikely that Bush can go very far in the history books on the back of a paltry 3 or 4 percentage point tax cut for the rich.

Companies have been diluting your equity via stock options claiming that management needs incentives of millions of dollars just to get up in the morning and come in to work, ... Then they pick you off by trading on insider information, selling shares before the bad news hits and you have a chance to get out.

I try to draw attention to where we were before the hurricane,

Emerging-market bond funds did well this quarter, up 3.6 on average, for the same reason as emerging-market stocks. As commodity prices rose, money from the developed world flooded such commodity-rich countries as Russia and Brazil, strengthening their fiscal balance sheets and the credit quality of their bonds. Consequently, investors became less fearful of owning them. Many so-called emerging markets have long since emerged, ... Russia now has an investment-grade credit rating and with oil where it is right now, probably more money in the bank than the U. S.

So, the lower inflation goes and the more and more investors believe that inflation will stay low, the better it is for the bond market.

I think we'll have a lot more coming in. And it's only the first year of operation. Not a lot of people know about the program.

We think that inflation will be benign and may come down from these levels.

There's nothing really wrong with some of the things GE has done, ... It's to the advantage of a company to borrow cheaply and sell stock at a high PE ratio. That's what companies can do to assist in growing earnings.

That is not to say that long government bonds won't go up in price if the 'system' suffers some elimination, slower growth, or to be frank, a recession in 2006,

It's a very delicate balance.

His bark is worse than his bite. He's got a gruff exterior but underneath is a heart of gold.

This is a market of disparate opinions and therefore increasing opportunities for those who get it right. We hope to be one.

As long as the stock market does what it does, and keeps going up, the wealth effect is going to transmit into a fairly strong U.S. economy and preclude the Fed from easing rates,

Inflation and deflation in this levered world coexist nearly side-by-side,

Either way, ... we pay the price higher import costs, a cutback in spending on cheap foreign goods, rising inflation, perhaps chaotic financial markets, a lower standard of living.