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Bill Gross had another great trade idea... and he blew it

Akin Oyedele   

Bill Gross had another great trade idea... and he blew it
Stock Market2 min read

Bill Gross

Janus

Bill Gross, right again. But also wrong.

Bill Gross did it again.

In a tweet on June 3, Bill Gross said that after he failed to execute on his "short of a lifetime" - a bet that German Bund yields would rise - his next big short was China Shenzhen index.

About a week after Gross' tweet, the index peaked.

Now it's down about 40%.

And just like Gross did with the Bund short, he also failed to actually make the trade he called on Twitter... and failed to make any money.

In an interview with Bloomberg's Mary Childs, Gross said that he didn't make the trade he called because, "I was trying to stick to my knitting, and China wasn't really my knitting."

Now, it may be too late for Gross to short Chinese stocks; his time has come and gone. Gross told Childs that it's too risky to short stocks in a market where up to 70% of the stocks are frozen.

The freeze is part of acute measures that Chinese authorities are taking to stem the free fall in the market, which had the best-performing index in the world this year.

'"Woulda coulda shoulda," Gross told Bloomberg. "'Obviously I wish I'd shorted a bunch of shares but that's the bane of the portfolio manager: never happy."

The Shenzhen index rallied 4% on Thursday, and the Shanghai index had its best one-day performance since 2009.

Screen Shot 2015 07 09 at 8.05.30 AM

Investing.com

Head over to Bloomberg for the full story »

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