BlackRock Inc. have joined Pacific Investment Management Co. (PIMCO) in recommending inflation linked bonds and gold, warning costs are poised to pick up and there is a growing risk of inflation.
“We like inflation-linked bonds and gold as diversifiers” said New York-based BlackRock which is the world’s largest asset manager, managing $4.6 trillion, reported Bloomberg.
Bill Gross is out with his latest investment outlook and it's quite the entertaining read.
Why, Gross wants to know, would anyone invest in safe haven assets (like bunds) that yield less than zero, thus locking in a guaranteed loss at maturity? The answer: investors aren't familiar enough with ancient Greece.
Read below for the details and for more on why central bankers had better get global growth and trade moving - "or else."
From "Zeno's Paradox," by Bill Gross
Two weeks ago, in our latest warning to shorts just after Gartman decided to short the market by going long the VIX (just ahead of its Yellen-inspired clobbering) we said we have "bad news for the bear: Gartman will be long the VIX until the S&P hits 2,118." This is what the regular CNBC Fast Money guest said:
Herding cats is a notoriously difficult task, but Janet Yellen served notice on Tuesday that no matter what emanates from other members of the US monetary politburo, there’s only one house view and that’s her’s. “As she spoke, I couldn’t help picturing a mother lion swatting her misbehaving cubs back into line,” Bloomberg’s Richard Breslow wrote this morning.
While there’s something disturbing about picturing the “diminutive” Fed chair as a “mother lion,” the analogy seems apt.