What Did Gross Think of Bond Funds in 2011?

How did he adjust the portfolio?

In March 2011, bond king Gross dumped US long bonds, shifting toward investment-grade and shorter-duration paper; he told PIMCO’s website he expected inflation or rate hikes to hit the Treasury market within six to nine months, pushing yields up and prices down. The Fed’s second QE was ending, the federal deficit was huge, and austerity expectations were lifting yields.

What does it mean for MPF bond funds?

MPF bond funds mostly hold global bonds, so Treasury moves affect them. The 2011 shift was a reminder: bonds aren’t risk-free — long bonds get sold in rising-rate environments. Compare long-run records at MPF fund comparison.

Are conservative funds safe?

Relatively steady but low-returning; suitable for near-retirees who should switch to safety as retirement nears.