Former mutual fund manager-turned-investment advisor Wade Slome (Sidoxia) had some pretty sharp words for Pimco and its media manoeuvrings on his Investing Caffeine blog this morning. His take is that Pimco is a glorified beneficiary of massive, multi-decade shifts in interest rates and demographics and that their admonitions to buy bonds instead of stocks have grown a bit heavy-handed of late.
His takedown of Mohamed El-Erian is particularly brutal:
Mohamed El-Erian is a fresher face to the PIMCO scene and will be tougher to pin down on his forecasts. He arrived at the company in early 2008 after shuffling over from Harvard’s endowment fund. El-Erian has a gift for cryptically speaking in an enigmatic language that could only make former Federal Reserve Chairman Alan Greenspan proud. Like many economists, El-Erian laces his commentary with many caveats, hedges, and generalities – concrete predictions are not a strength of his. Here are a few of my favorite El-Erian obscurities:
- “ongoing paradigm shift”
- “endogenous liquidity”
- “tail hedging”
- “socialization losses”
Excuse me while I grab my shovel – stuff is starting to pile up here.