NEW YORK (Reuters) – Even if the Federal Reserve lifts off from zero interest rates in December, “it will probably be the most dovish rate hike ever”, Pimco’s global economic adviser Joachim Fels said in a client note on Tuesday.
“By contrast, the other big players – the ECB, the BOJ and the PBOC – look set to ease policy further,” said Fels, referring to the European Central Bank, the Bank of Japan and the People’s Bank of China.
NEW YORK (Reuters) – DoubleLine Capital co-founder Jeffrey Gundlach, widely followed for his investment calls, warned after a weak non-farm payrolls report on Friday that the U.S. equity market as well as other risk markets including high-yield “junk” bonds face another round of selling pressure.
“The reason the markets aren’t going lower is people are holding and hoping,” Gundlach said in a telephone interview with Reuters. “The market bottoms out when people are selling and sold out – not when they are holding and hoping. I don’t think you’ve seen real selling in risk assets broadly. Markets need buying to go up and they need volume to go up. They can fall just on gravity.”
NEW YORK, Oct 1 (Reuters) – DoubleLine Capital, whose
co-founder Jeffrey Gundlach is widely followed for his
investment calls, on Thursday reported $1.1 billion in net
additional investments in September, the 20th consecutive month
it has attracted new money.
The Los Angeles-based firm said the DoubleLine Total Return
Bond Fund, its largest portfolio by assets, had $790
million of inflows in September, for a year-to-date net inflow
of $8.1 billion, DoubleLine said.
LONDON/NEW YORK (Reuters) – Global investors limp into the fourth quarter of a volatile 2015 nursing the worst financial market returns since the credit bust and banking collapse of 2008 and with few hopes of making up ground before the end of the year.
Of 21 major financial benchmarks tracked by Reuters, only two are up so far this year as slowing growth – most worryingly in China – an emerging market crisis and prolonged uncertainty on when U.S. interest rates might rise have slammed markets around the world.
NEW YORK (Reuters) – Billionaire investor activist Carl Icahn ramped up criticism of the U.S. Federal Reserve, warning about the unintended consequences of ultra low interest rates on the economy and financial markets.
“They don’t understand the treacherous path they are going down,” Icahn said in an interview with Reuters, in which he also declared his support for Donald trump as a candidate to be the next U.S. president.
Billionaire investor Carl Icahn is backing Donald Trump’s presidential bid.
The Wall Street veteran said the property mogul’s strong sense of self was a positive for high office because he wouldn’t be threatened by having smart people, such as Icahn, giving him advice.
NEW YORK (Reuters) – Dan Ivascyn, who succeeded Bill Gross as Pimco’s chief investment officer a year ago, said while he is pleased fund performance has improved, it has been “challenging” stabilizing one of the world’s largest asset managers over the last 12 months.
“Pimco has had a more challenging year than most,” Ivascyn said in a telephone interview. The Pimco Total Return Fund, which lost its title in April as the world’s biggest bond mutual fund following two years of withdrawals, dipped below $100 billion in assets under management in August for the first time in more than eight years. Pimco’s profit fell this year, raising the possibility that the firm may have to reduce costs.
NEW YORK (Reuters) – Bond guru Bill Gross, who has long called for the Federal Reserve to raise interest rates, urged the U.S. central bank on Wednesday to “get off zero and get off quick” as zero-bound levels are harming the real economy and destroying insurance company balance sheets and pension funds.
In his October Investment Outlook report, Gross wrote that the Fed, which did not raise its benchmark interest rates at last week’s high-profile policy meeting, should acknowledge the destructive nature of zero percent interest rates over the intermediate and longer term.
NEW YORK (Reuters) – Bond fund giant Pacific Investment Management Co said on Tuesday the pace of Federal Reserve interest-rate increases is likely to be even more gradual than the firm expected in March and that the U.S. central bank may find it impossible to escape the effective lower bound of policy rates.
Pimco said in its quarterly Cyclical Forum outlook report that it cut its forecast for U.S. economic growth in the next 12 months to between 2.25 percent and 2.75 percent, from 2.5 percent and 3 percent in March.
NEW YORK (Reuters) – Investors should add longer-duration government bonds to their portfolio if they believe the Federal Reserve will begin its tightening cycle in December, Jeffrey Gundlach, chief executive of DoubleLine Capital, said on a webcast Monday.
Gundlach said he believes an interest rate increase in December would be a policy mistake, given slowing global growth, lack of inflationary pressures and selling pressure in risky high-yield “junk” bonds and emerging-market securities.