Highlights from Bill Gross's latest Investment Outlook
We learned that Bill Gross can't draw in his latest missive and also that he doesn't care for collecting art. He mocks the art world for paying $150,000 for a 17x14-inch monochrome blue painting.
He then switches gears to (you guessed it) the bond market and reflects on his "Short of a lifetime" trade on the German Bund. He admits it wasn't perfectly executed (despite the wide publicity, Gross said the time to short Bunds was after the ECB stopped buying).
Overall, he lays down how much he thinks bond spreads are out of whack in the long-term.
If you expect the compression he does would argue for EUR/USD and GBP/USD longs. He warns, however, that misaligned prices can overshoot for a long time.
