Gross' Twitter advice to buy 5-year Treasuries raises suspicion, ethical questions
Zero Hedge
Gross' Twitter advice to buy 5-year Treasuries raises suspicion, ethical questions. Bill Gross of the PIMCO fund gave his Twitter followers some investment advice today: buy 5-year Treasuries, growth is too low for the Fed to taper. While this advice has some logic, it's also a little suspicious. If 5-year Treasuries are a good investment, why would PIMCO want other investors buy in and drive up the price? At the end of June, PIMCO's flagship fund had roughly 46% of its funds in 5-10 year Treasuries. This could be making Gross nervous, especially considering the shaky bond market. Perhaps Gross is trying to push up bond prices while PIMCO starts selling off its holdings. Another issue with this Tweet is that it had no disclaimer possibly breaking Series 63 and Series 7 laws. (VIEW LINK)
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