Is Saumil Parikh, a portfolio manager at Pimco, making another grim prediction just to redirect blame for the bond behemoth’s bad bets? Is it another case of Bernanke bashing?
If accurate, Parikh’s forecast for a greater than 60% chance of global recession within three to five years could earn him a spot in the shadow of Nouriel Roubini.
Parikh cited cyclical statistics and high debt levels in his gloomy outlook. He offered a mixed bag with a less bleak future for the U.S. "I think Europe will remain mired in a recession while the U.S. will chug along at a low rate of growth, while emerging markets move ahead especially those in Asia," he wrote.
Perhaps Parikh is just carrying on Pimco’s recent spate of dark predictions and backing the big boss, company founder Bill Gross who earlier this month blasted the Federal Reserve and its Chairman Ben Bernanke, claiming “it's your policies that may be now part of the problem rather than the solution.”
Could the mega money manager be overcompensating for recent losses?
The prized Pimco Total Return ETF which trades as BOND posted its first-ever monthly outflows in May and then shed $119 million in the first five days of June. May was also cruel to Pimco's $292 billion Total Return Fund (PTTAX). Investors have been fleeing the flagship mutual fund, with outflows overtaking inflows for the first time since 2011.
Or maybe he’s right, and it’s the pending doom that’s to blame for the slides.
Borrowing from Blankfein (eFinancialCareers)
You may not make $26 million, but you can fatten your own coffers by taking these compensation negotiation tips from star bankers.
Jaime Dimon Says Shut Up Already (Dealbreaker)
J.P. Morgan chief deflates Whale scandal into a “$300 million dollar problem.”
U.S. Rep Springs Cincinnati (Bloomberg)
Republican House Ways and Means Committee chairman contradicts Democratic rival’s claim that small-government group scrutiny started in the Cincinnati IRS office.
Bestowing Buffett with a Bushel and a Batch (WSJ)
It’s a corny story, but don’t throw tomatoes at 28-year-old MBA Tracy Britt who won a job at Berkshire Hathaway.
Hedgie Haggles with Hamptons Handyman (Business Insider)
A man who tweets as HamptonsBorn ratted out a hedge fund manager known only as Mr. C for prompting neighbors to complain to cops about noisy generators.
FX Scam Went on for Decade (Bloomberg)
Dealers say big bank traders have been front-running client orders and rigging rates by pushing through trades before and during the 60-second windows when the benchmarks are set.
RBS Chief Gives Up (eFinancialCareers)
Stephen Hester steps down from “bruising and difficult job” following the board’s decision.
John Mack Surfaces at Glencore (WSJ)
Commodities giant names former Morgan Stanley chief to its board while still searching for a new chairman.
Buzz Around the Office
Beware the Spittle (YouTube)
You’re safe to watch this woman beatbox. Well at least you’re safe from the spit you’ll see on screen.
List of the Day: Clueless Candidates
Are you “unfinadable” by recruiters? Here’s how to raise your visibility.
- Include multiple keywords on your resume.
- Spell out and parenthetically abbreviate all job titles.
- Include ‘white’ keywords in the body of your resume.
(Source: AOL Jobs)
Follow the author on Twitter @natashagural