Tags: Pimco | Gross | Bull | Run | Stocks

Pimco's Gross: Here Comes the Bull Run in Stocks

Wednesday, 07 Apr 2010 09:22 AM

In what may be the most brilliant news for stocks in a long time, star bond fund manager Bill Gross is suggesting that the 30-year bull market in fixed-income securities is ending and a new bull market is emerging in equities.

“Though Gross, who runs Pacific Investment Management Co.’s $214 billion Pimco Total Return Fund, would never tell you to buy stocks, isn’t that what he means?” writes David Pauly, a columnist for Bloomberg News.

“Pimco, which Gross co-founded, more or less said as much in December. It announced the Pimco Global Opportunities Fund, which will invest in stocks, though it also will buy bank loans, junk bonds and distressed securities.”

Stocks are overdue for better times after a 10-year span that featured the dot-com crash followed by the more recent Wall Street-induced credit crunch. The market certainly has improved during in the last 12 months.

“The benchmark Standard & Poor’s 500 Index is up more than 70 percent from its recession low a year ago this month,” writes Pauly.

“Stocks have improved along with the American economy, which grew 5.6 percent in the fourth quarter as corporate profits jumped 8 percent.”

Favorable news is continuing the trend.

Shares of U.S. Steel Corp., a backbone-industry company, have climbed almost 40 percent since Feb. 4, when it was at $44.07. It recently traded at $69.71.

Apple Inc., maker of iPods and iPads, may hit $300 from its current price of about $239.54, Credit Suisse Group AG said.

“While Gross is giving stocks an indirect plug, he’s still buying bonds. He recommends, for instance, longer-term securities of Germany and Canada, whose governments are more frugal than that of the U.S. Pimco’s $1 trillion or so of assets are still overwhelmingly in bonds,” writes Pauly. “Let’s wait to see if Pimco makes an even bigger splash in stocks.”

Others agree that a bull market is in the offing for equities, as MarketWatch reports that publicly-traded companies are now hoarding cash to bolster their balance sheets.

© 2015 Moneynews. All rights reserved.

Around the Web
Join the Newsmax Community
Please review Community Guidelines before posting a comment.
>> Register to share your comments with the community.
>> Login if you are already a member.
blog comments powered by Disqus
Zip Code:
Privacy: We never share your email.
Hot Topics
Follow Newsmax
Like us
on Facebook
Follow us
on Twitter
Add us
on Google Plus
Around the Web
Top Stories
You May Also Like

Nation Feeling Obama Burnout

Monday, 25 Aug 2014 08:02 AM

Obama could have looked dynamic if he had ventured forth to riot-torn Ferguson, Mo. . . .

'Ice-Bucket Challenge' a Winner for Social Media

Wednesday, 20 Aug 2014 11:27 AM

It seems that a social-media phenomenon has exploded in which people spill a bucket of ice water over their heads and pa . . .

Media Tear Into Tiger Woods

Monday, 11 Aug 2014 08:33 AM

I was legitimately wondering what the people's sentiment is these days about the star we loved to hate a few years ago. . . .

Most Commented

Newsmax, Moneynews, Newsmax Health, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, and Newsmax World are trademarks of Newsmax Media, Inc.

America's News Page
©  Newsmax Media, Inc.
All Rights Reserved