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Thursday, June 13, 2013

As The Bond Market Turns...Investors Show They are A Fickle Bunch

I  was never a fan of Pimco Total Retun Fund when it was just a mutual fund and its new ETF option hasn't changed my mind although at least the management fees are much lower.. My problem isnt the manager Bill Gross but the fact that as a 'go anywhere, do everything fund it can be anywhere (including out of ) the bond market. So you are counting on Bill Gross not getting the returns of the bond market as a whole. For the simplest way to postion a bnd allocation AGG the total bond market index merits a good look. At least you wont underperform the bond market.

Based on recent performance this 'a surprise to me

The Pimco Total Return ETF (NYSEArca: BOND) broke its impressive asset-gathering streak with its first monthly outflows ever in May. Those losses have been compounded by BOND bleeding $119 million in the first five days of June.

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