Notes of Note from John F. Ince

Bond-fund heavyweight Bill Gross, investment manager Jeremy Grantham and hedge-fund managers David Tepper and Alan Fournier are among the best-known investors who are bracing for a possible bout of deflation, a development that could cripple global economies and world stock markets.Journal CommunityThe investors cite weak economic figures and a mounting consensus that global policy makers are reluctant, or unable, to take further steps to boost economic growth as reasons for their market positions.”Deflation isnt just a topic of intellectual curiosity, its happening,” says Mr. Gross, who runs the $239 billion mutual fund Pimco Total Return Fund, citing an annualized 0.1% decline over the past two years in the U.S. consumer-price index. “Its an uncertain world thats tipping toward deflation.”These investors are walking a fine line. Deflation scares immediately following the 2008 financial crisis didnt materialize, in large part because central banks intervened.

via Abreast of the Market: Big Investors Fear Deflation –

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