Pimco Sees Economic Trouble on the Horizon

Bill Gross, the founder of the world's largest bond fund, made a huge bet on US treasuries. The implication is that Pimco believes that yields on treasuries will increase. That happens when investors are seeking a safe haven for their money. He also bet on the long end of the curve which implies a low risk of inflation. Pimco is betting that the global economy is in trouble. He lost a lot of money last year by shorting the US treasury. He was betting on recovery and he lost big time.