Gross on Rates: Enough Already
By Pat Regnier

(MONEY Magazine) – Bond King Bill Gross, manager of the $94 billion Pimco Total Return fund and the MONEY 65's Harbor Bond fund, predicted last summer that the Fed wouldn't raise short-term rates above 3.5%. (Rising rates are bad for bond prices.) In March, new Fed chief Ben Bernanke hiked 'em to 4.75%. So how about it, Bill? "Like anybody who's been wrong, I'm basically saying there's just one more round," says Gross, meaning he thinks the pain will stop at 5%. He still frets more about a potential economic slowdown than a rise in inflation. Gross' cloudy crystal ball isn't hurting him. With stakes in mortgages and emerging markets bonds, which aren't so affected by Fed moves, Harbor is beating two-thirds of similar funds in '06.

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Market indexes are shown in real time, except for the DJIA, which is delayed by two minutes. All times are ET. Disclaimer LIBOR Warning: Neither BBA Enterprises Limited, nor the BBA LIBOR Contributor Banks, nor Reuters, can be held liable for any irregularity or inaccuracy of BBA LIBOR. Disclaimer. Morningstar: © 2014 Morningstar, Inc. All Rights Reserved. Disclaimer The Dow Jones IndexesSM are proprietary to and distributed by Dow Jones & Company, Inc. and have been licensed for use. All content of the Dow Jones IndexesSM © 2014 is proprietary to Dow Jones & Company, Inc. Chicago Mercantile Association. The market data is the property of Chicago Mercantile Exchange Inc. and its licensors. All rights reserved. FactSet Research Systems Inc. 2014. All rights reserved. Most stock quote data provided by BATS.