Our favorite blackjack card counter, billionaire extra-ordinare Bill Gross, will be taking an active role in in the PIMCO High Income Fund, PHK.
This made me do a double take, because I am always watching the movements of players I respect.
PHK primarily invests in below quality debt obligations, aka "junk bonds". I've been forecasting an economic recovery by the end of this year. A recovery in the sense that our economy should stop bleeding by the end of the year.
Implicit in Gross' move to PHK is his belief the economy is starting to bottom. Market conditions are going to improve and any companies that are still alive, but have junk valuation are likely to recover more quickly from a bottoming economy.
I'll take this as another sign the economy might be bottoming to 0% GDP.
I don't really know much about junk bonds and can't really recommend these plays. However, I'm starting to look into HYG and JNK.
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