A flat yield curve is the antithesis of a fundamentally strong economy, Bill Gross said in a Tuesday investment letter. Gross advocated that the U.S. Federal Reserve engage in “Operation Switch” rather than the “Operation Twist,” the 2012 central bank initiated program that purchased ten year Treasuries and is credited as a leading factor in flattening the long end of the yield curve. Gross: The physics of Fed quantitative easing is the more it is used the less potent its stimulative impact Rather than starting his letter with whimsical musings about his gender bending cat or compare a sneeze to an…
Bill Gross Calls For "Operation Switch," As Stimulus Impact Muted With Repeated Usage
Mark Melin
Mark Melin is an alternative investment practitioner whose specialty is recognizing the impact of beta market environment on a technical trading strategy. A portfolio and industry consultant, wrote or edited three books including High Performance Managed Futures (Wiley 2010) and The Chicago Board of Trade’s Handbook of Futures and Options (McGraw-Hill 2008) and taught a course at Northwestern University's executive education program.