Investors have little choice now but to cling to low-yielding U.S. government debt as European leaders ponder a messy Greek exit from the euro zone, Pimco's Bill Gross told CNBC.Scott Eells | Bloomberg | Getty ImagesDespite its own debt mess that has the U.S. headed toward the so-called fiscal cliff by year's end, Gross said a flight from risk assets such as stocks and commodities will continue to send money into Treasurys.Pimco's Total Return Fund [PTRAX Loading... () ] is the largest bond fund in the world with nearly $260 billion in assets. Last year, Gross told investors to avoid Treasurys, which posted strong gains, and buy preferred stocks, causing him to issue an apology earlier this year because the fund underperformed its peers.Investors, meanwhile, ... Continue reading →
The decline of milk prices this year has been a welcome development for consumers pressured by $4 a gallon gas, but could be a bad sign for the economy.Getty ImagesFalling milk prices—particularly over the past decade—have been a warning signal for a slowdown, while rising prices have accompanied upturns in the economy, according to research from Nicholas Colas, chief market strategist at ConvergEx in New York."That's good news for this high-profile consumer good and its effect on inflationary expectations," Colas said. "At the same time, milk prices have been cyclical since the Great Depression. The pullback in 2012 could therefore be a useful early warning sign about a slowing U.S., and global, recovery."Prices pulled back during the recessions of 2002-03 and 2009, while they surged ... Continue reading →
Amid all the challenges facing the markets — Greece, Facebook, JPMorgan — investors face an even larger potential problem: They soon could be running out of traditional safe havens for their money.CNBC/Getty ImagesMuch has been made recently of how gold no longer offers its traditional buffer against financial turmoil, with the yellow metal in severe correction mode.But some strategists are beginning to worry that other places where investors are stowing their money — high-grade bonds, Treasurys and defensive stocks in particular — also could be losing their protective shields."The problem is we're seeing safe-haven flows with shrinking instruments into which you can run," says Kim Rupert, managing director of global fixed income analysis at Action Economics in San Francisco. "Once the run for the exits ... Continue reading →
Amid all the challenges facing the markets — Greece, Facebook, JPMorgan — investors face an even larger potential problem: They soon could be running out of traditional safe havens for their money.CNBC/Getty ImagesMuch has been made recently of how gold no longer offers its traditional buffer against financial turmoil, with the yellow metal in severe correction mode.But some strategists are beginning to worry that other places where investors are stowing their money — high-grade bonds, Treasurys and defensive stocks in particular — also could be losing their protective shields."The problem is we're seeing safe-haven flows with shrinking instruments into which you can run," says Kim Rupert, managing director of global fixed income analysis at Action Economics in San Francisco. "Once the run for the exits ... Continue reading →
