Gross Distortions

Oh, see the fire's sweepin'
Our very street today
Burns like a red coal carpet
Mad bull lost it's way
--The Rolling Stones

Bill Gross notes two primary distortions of the extremely low interest rates forced on markets by central banks over the past few years. One is lower propensity to save. "If savings wither then so does its Siamese Twin - investment - and with it, long term productivity."

The other is asset prices. "Artificially low interest rates have propelled financial markets."

His view is that the imbalances caused by low interest rate policies are beginning to push back, with financial markets reeling in response.

He likes cash or 'near cash' (i.e., short term corporates) here.

position in SPX