walkitout (walkitout) wrote,
walkitout
walkitout

News Flash: Gross Admits Error

I saw some coverage on Bloomberg, but here's some sample coverage online:

http://www.theglobeandmail.com/globe-investor/bill-gross-admits-mistake-in-dumping-us-debt/article2146053/

"he argued that many of his peers were also short on Treasuries when compared with their benchmark, the Barclays Capital Aggregate bond index."

That's his excuse? Really?

"“I don’t know that a 15 per cent underweight relative to the competition was a big deal, but it sort of became so in the headlines,” he said."

Actually, I think it was more his insistent predictions of inflation that got everyone's attention.

"“When you’re underperforming the index, you go home at night and cry in your beer,” he said, adding: “It’s not fun, but who said this business should be fun. We’re too well paid to hang our heads and say boo-hoo.”"

See, even _he_ thinks he's too well paid.

I'm a little touchy on the topic of Bill Gross, Pimco and inflation predictions. He's a big enough name and has a personal style which generates cult-like behavior in a certain fraction of the financial advice industry. What that means for me is that I keep pointing out why he has to be wrong and even when I address every possible argument on the subject, I get referred back to him, because if I just read what he wrote, I'll "get it".

Yeah, well, I never did "get it", and it's just as well. It'd be a good day if he lost his well-paid job. The next person to have it might be worse, but at least they'd be different.
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