Gross: My Fund Hasn't Been Selling Volatility

The transcript discusses investment strategies in a low volatility market, focusing on the dislike for bonds and stocks, and the preference for cash equivalents and arbitrage opportunities. It highlights Bill Gross's historical approach to arbitrage and the current market conditions affecting volatility. The discussion also touches on the challenges of selling volatility in the current market environment.

What investment strategy does the speaker suggest when both bonds and stocks are not favorable?

• Invest in long-term government bonds

• Go to cash equivalents like short-term corporate bonds

• Invest heavily in real estate

• Diversify into international markets

What example does the speaker give to illustrate an arbitrage opportunity?

• Investing in gold

• LinkedIn being bought by Microsoft

• Buying undervalued real estate

• Investing in emerging market bonds

What was a key feature of the PIMCO style of bond management?

• Concentrating on real estate investments

• Focus on high-risk stocks

• Arbitrage opportunities in treasury futures

• Investing in emerging markets

How does the speaker describe the current state of market volatility?

• Volatility is unpredictable and erratic

• Volatility is about 65% of historical levels

• Volatility is consistent with historical averages

• Volatility is at an all-time high

What is the speaker's view on selling volatility as a trade strategy in the current market?

• It is only suitable for large institutional investors

• It is a highly rewarding strategy

• It is not a good risk-reward opportunity at the moment

• It is the best strategy for short-term gains