Best of the Bond Market for August 1st, 2012
Business Insider: Henry Blodget says Bill Gross has his math wrong on stocks – Why is Gross wrong? Because stocks actually have not “appreciated†at ~7% a year. Again, stocks have not, in fact, “appreciated†at ~7% per year for the past couple hundred years. Stocks have only “appreciated†about 2% per year. The rest is dividends.
CNN Money: If his past stock market calls are any evidence little attention should be paid to Bill Gross’ latest. – chart showing other stock market calls by Gross.
Learn Bonds: Even if Bill Gross really did make $200 Million last year, that still may not be enough. – there is a strong argument to be made that even if Bill Gross made $1 billion per year that he would be undercompensated by several measures.
Money and Markets: Last week’s “weekly outside reversal†could signal trouble for the long bond. – Treasury bonds completed what is known to technicians as a “weekly outside reversal.†That means Treasury bonds made a new, 52-week high last Wednesday, but finished the weeklower thanks to Friday’s big decline.
