Out Fox The $treet

Interesting Investment Outlook from Bill Gross today. Bill is a Managing Director at PIMCO and commonly known as a leading expert on the fixed income market. Today Bill published a report titled Run Turkey, Run . Basically a slam on the QE2 plans and the end of the 30 year bull market in bonds (finally!). Not to mention a slam on the 2 party political system that leaves the American people high and dry. The bondholders remaining after QE2 will be like the turkey waiting on Thanksgiving Day. They might receive some immediate fat gains from bond yields being pushed lower for the last time, but ultimately they'll be served up on the platter of rates that can't go lower.  Rates ultimately will begin creeping higher. Bill basically outlines why a thesis of investing in companies that prosper abroad has been very rewarding over the last 10 years. The political system in the US has become as corrupt as ever and void of a fiduciary responsibility to the American people. He suggests...

Just reported the other day on the outflows of equity funds and into bond funds that were hitting dangerous levels. The New York Times reported over the weekend about how small investors continue to make the wrong move. This time its the movement into bonds even as corporations continue to recover. Some $33B has exited equity mutual funds at a time that billions should be flowing into the funds. Fidelity also reported that the percentage of equity holdings in 401Ks is down to 57% from a historical average of around 70%. What is scary is that small investors likely consider bond funds as safe and don't understand the risk of investing in bond funds. If interest rates go up, these bond funds will drop in price. Completely different risk from investing in a bond that you plan to hold to maturity where your just accepting company risk if they were to go bankrupt. Another interesting stat is that while money flowed into stocks in March & April as the market peaked, money actu...

Cramer seems to be backing our Net Payout Yield Portfolio. Retail investors continue to push massive amounts of money into bond funds instead of stock funds. As Cramer suggests, this isn't prudent with the government continuing to dilute the market with massive issuance now and in the future. The better option is clearly high paying dividend stocks which the Net Payout Yield Portfolio is loaded up with. Check out our performance at marketocracy.com . Then watch the clip and move your money into our portfolio or a similar one.