Why Is Bill Gross Betting On A Vicious Move Higher In The Dollar?


Photo: Public Domain Photos via flickr

Yesterday PIMCO reported that it had completely abandoned US government bonds.Perhaps more importantly, PIMCO now has a gigantic position in cash — it’s biggest ever.

Is PIMCO betting on a vicious rally in the dollar?

There are a few reasons it could happen:

  • The crackup of the Eurozone will help the dollar.
  • The end of QEIII is looking more and more likely.
  • Anti-dollar sentiment is extreme.
  • Commodities are all looking peakish, etc.
  • Aggressive spending cuts in DC.

The signs are building up.

NOW WATCH: Money & Markets videos

Want to read a more in-depth view on the trends influencing Australian business and the global economy? BI / Research is designed to help executives and industry leaders understand the major challenges and opportunities for industry, technology, strategy and the economy in the future. Sign up for free at research.businessinsider.com.au.

Tagged In

dollar moneygame-us