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El Erian off a sinking ship January 22, 2014

Posted by hslu in Economics.
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With tapering in progress and the ending of the 32-year old Bond bull market, PIMCO will face strong head wind going forward.

El Erian saw what’s coming and prepared for his exit of PIMCO with a series of op-eds and short articles.

He was marketing himself in public to financial instutions, foreign buyers or government agencies.

We call this: ‘打知名度.’

We’ll have to wait for the announcement which should come soon.

In the mean time, Bill Gross will be a loney man with less money to manage and fewer dollars into his pockets.

Gone are the 8 or 10% annual returns and the ‘new normal’ will have a negative sign in front of PIMCO’s annual return in the next couple of years until the Fed is out the market and let the short rate rise.

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