Monday, January 9, 2012


The Pimco-Fest continues as I found today's Bloomberg interview with Pimco's CEO and CIO, Mohamed El-Erian.  The CEO restates much of what Bill Gross highlighted in his article, but heck, it's a video, so you don't have to read!!!!

How awesome!

There are a few takeaways that I enjoyed and since El-Erian is such a sharp guy, his perspective is neat, and also he always uses language so well.

People's mindset doesn't change to match the risk environment we are in.

Fed is out of tools, so now it is employing communication to try to push investors to take more risk.

The Fed alone cannot help and fix everything, other agencies globally are asleep at the well.

QE III cannot produce what we want.  The Fed wants to do things, but can't produce the outcomes.

Is the US decoupled?  There is a massive headwind called Europe.  We can't avoid Europe.

Investors need to stay defensive,  Focus on fundamentals and pay attention to technicals.

Uncertainty and unpredictability should never lead to paralysis.

US stocks are the cleanest dirty shirts, we will see if they can continue to produce revenue while controlling costs.

There is nothing new in this interview, but the clarity and conciseness that he brings is refreshing.


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