Premium: Bond market’s most famous voice warns that the public is being conned on inflation

Because huge deal sizes restricts the action to those controlling the big money, most ignore the bond market, which trades negotiable debt of governments, public sector bodies and corporations. Smart investors, however, pay very close attention to the machinations of this market. Primarily because it reflects the movements of interest rates – the 'oil' that stimulates, or slows economic growth..One of the bond market's best known voices belongs to Bill Gross (77), co-founder in 1971 of the massive Pacific Investment Management Co (PIMCO). At many years Gross ran the company's flagship $270bn Total Return Fund. And when he speaks, everyone who wants to know where interest rates are headed listens. Attentively..Although Gross has relocated to different pastures, his views remain still deeply respected. So when he calls out Central Banks for heating up an already white-hot money market, best we listen. In a piece from our partners at the Financial Times of London, Gross warns how the creation of fresh money from thin air has pushed many asset classes to 'dangerous' levels. And with inflation starting to show up in the official data….___STEADY_PAYWALL___.More for you to read today:.* Strap Yourself In: Inflation Isn't Going Away. An ageing workforce and trade in retreat. Such price pressures won't soon disappear..* The Secret Power of Reconnecting With Old Friends. There's a special boost that only old friends can give us. Here's why we need it now..* The IMF's post investigation report on Zimbabwe. Multilateral sets out conditions for SA's neighbour to start borrowing again..NB FOR YOUR WALL STREET JOURNAL ACCESS….As a Premium subscriber you are entitled to full membership of wsj.com (normal price $29 a month). Be sure to action your access through the Premium link on the BizNews website. Because of The Wall Street Journal's credential requirements, be sure to create a password which has at least 8 characters and includes at least one letter and one number – NB it MAY NOT contain any special characters (ie #, !, @ etc). To maintain access to WSJ.com, you MUST enter our partner's website via BizNews Premium at least once a month. A final PS, if you had previously signed up for WSJ you'll need to clear the cookies from your device. Our help desk can assist – support@biznews.com..If you'd like to help sustain our independent voice, why not share the love by making a gift that keeps giving? Click here to access the BizNews Premium subscription signup form, and be sure tick the relevant box. At R100 a month and inclusive of full membership of The Wall Street Journal, it's a mind-expanding gift at an incredibly modest price.

Premium: Bond market’s most famous voice warns that the public is being conned on inflation

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