PIMCO’s Bill Gross names ‘the only safe haven’ in this market - Yahoo Finance

PIMCO’s Bill Gross names ‘the only safe haven’ in this market - Yahoo Finance



Here is a great article by Bill Gross of Pimco,  the bond king, in which he talks about the strangeness of today's stock market in the wake of the July 31, 2014 -300 points down day on the Dow.  Bonds unusually fell along with stocks that day, including U.S. and German bonds.  The economic war with Russia and the default of Argentina is causing investors to think that holding bonds is not worth it.



CEFL, a 2x closed-end fund comprised of a lot of bonds, fell around 6% for the week.  That fall pretty much negates the 16% dividend of the stock because what if it falls 6% for every -300 down day on the Dow?  The stock is probably not worth holding anymore.  Bill Gross thinks that the yield of U.S. bonds may be the only safe haven in this unusual and unpredictable market.