Tags: Gross | Summers | Pimco | CNBC

CNBC Stumps Bill Gross in Interview About Fed Chairman

By    |   Wednesday, 18 Sep 2013 07:40 AM

Bill Gross is known as the "Bond King." Pimco, the firm he founded, has nearly $2 trillion under management. Most investors would appreciate the opportunity to learn what Gross thinks about the markets in general.

The day after Larry Summers asked not to be considered as a candidate for the Federal Reserve chairman position, Gross had a number of insights to offer about what that meant for the markets. He appeared on CNBC to discuss his thoughts and CNBC host Amanda Drury stumped him with her first question.

With stock prices up about 1 percent, Drury asked Gross why the markets were not reacting to the horrific shooting at the Washington Navy Yard. Gross tried to explain that this event was a tragedy, but had no impact on the markets.

Gross clearly understands that not every event impacts the markets. Pimco is the largest fund manager in the bond market and needs to have well-formed opinions to benefit from fixed-income investments.

Pimco is the firm that articulated the idea of the "New Normal" and lately has been positioning assets for the transition from current Fed Chairman Ben Bernanke's policies. Gross did manage to share some thoughts "in ten seconds" that Drury gave him at the end of the interview to turn to the markets.

Gross thinks that current Fed Vice Chair Janet Yellen will be Bernanke's successor and he believes she will continue to follow his policies.

CNBC is a news station and they seem to feel a need to tie every news event to the markets. Some events have no impact on markets and investors should remember that. Summers would have politicized the Fed confirmation process and his withdrawal was good news for the markets. The rest of the day's news made no difference in light of that event.

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MichaelCarr
Some events have no impact on markets and investors should remember that. Summers would have politicized the Fed confirmation process and his withdrawal was good news for the markets. The rest of the day's news made no difference in light of that event.
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Wednesday, 18 Sep 2013 07:40 AM
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