He will be the first to admit that he’s been wrong before, but Bill Gross is staking his reputation and much more behind this call. For the first time since January, PIMCO has increased their funds’ holdings in U.S. Treasuries, a move which could set up huge potential gains for Pimco’s clients… provided, of course, that Ben Bernanke and the Fed offer up QE3. Specifically, Gross believes that the Fed will target the U.S. housing market by extending its Operation Twist program which will otherwise be scheduled to end later this month. Read more
