The new "new normal" is a "paranormal" market — and this paranormal market could wind up haunting pension funds.
The world is changing and the old model of debt-driven growth is now just "a flawed business model," according to PIMCO's Bill Gross.
Last night I had the pleasure of speaking with Pimco's Bill Gross, one of America’s most famed investors, on CNBC’s Kudlow Report.
"Obviously in hindsight it¿s a bit of a mistake. Treasuries makes up roughly a quarter of the US bond market so saying we¿re going to completely abandon them in a fund as large as the one Bill Gross runs is a huge bet and it¿s a huge bullish bet on the credit markets, it¿s a huge bearish bet on government bonds. Now clearly that hasn¿t come true but economic conditions have deteriorated far quicker than either we or Pimco could have anticipated. And the Federal Reserve has made this additional commitment in the last couple of weeks. It has really supported the government bond market and that¿s to detriment of many other asset classes in the fixed income universe"¿ Guy Lebas, chief fixed income strategist at Janney Montgomery Scott
After a 512-point drop, a look at just what happened today, as all three of the averages entered correction territory, with Bill Gross, IMCO founder and CIO; Nouriel Roubini, NYU Stern School of Business; and CNBC's Scott Wapner, Bob Pisani, Mandy Drury, Simon Hobbs and Brian Sullivan. Also, a look at the Asian market opens.
President Barack Obama "essentially fired" Fed Chairman Ben Bernanke in televised remarks this week, former Federal Reserve Governor Laurence Meyer says.
Tuesday, 18 Jun 2013 | 6:00 PM ETHow to approach the Fed's monetary decision, with Mad Money host Jim Cramer.
Tuesday, 18 Jun 2013 | 12:01 PM ETThe Federal Reserve won't change course on quantitative easing this week, Steve Weiss of Short Hills Capital says.