June 17, 2007 – Yes, we’ve trumped the so-called experts again, including the person everyone in the media turns to regarding the direction of U.S. bonds, PIMCO’s Bill Gross, this time by more than 6 months. On January 7th, I wrote an article titled, “Ten Reasons Dollar Denominated Bonds Aren’t as Safe as You Think”. This week’s June 16th issue of The Economist, more than 6 months later after we published the reasons why dollar-denominated bonds were not low risk, contained an article discussing reasons for the “surprising” plunge in the prices of dollar denominated bonds this past month, and discussed why U.S. bonds, typically safe havens of investment for older investors, are not so safe anymore. Of course, they wrote this article after soaring bond yields had already sent bond prices plunging. At maalamalama, however, we weren’t surprised at all. In fact, we told you all the reasons why dollar denominated bonds weren’t safe six months ago and had you merely read the article I wrote here, many of you that own bonds could have saved yourself a lot of grief. In fact, our investment strategies that allow us to be ahead of the game by six months to a year of everyone else in knowing which way markets will turn is exactly what enables us to so easily make high double digit and triple digit returns on many individual stocks.
Furthermore, The Economist article stated, that Bill Gross of PIMCO, considered the world’s foremost expert on U.S. bonds, finally changed his bullish stance on bonds this month and admitted that they may no longer be a good investment. Again, we told you why dollar denominated bonds were not a good investment six months ago. And with the launch of our two new investment newsletters, the U.S. Stock Picker and the Global Stock Picker, last Friday, we’ve filled our initial issues with some stock picks that we are almost certain will soar six to twelve months from now. And when they do, I’m sure that they’ll make media headlines again after the fact. But again, our subscribers will have already known about these stocks way in advance of everyone else.
[tags]Bill Gross, U.S. bonds, dollar crisis[/tags]