PIMCO Hunkers Down, Not Buying Much Of Anything Anymore In Anticipation Of "Disinflation"

This article is a guest contribution by Tyler Durden, ZeroHedge.com.

PIMCO is cutting its exposure to all asset classes, confirming what all but equity chasers (yes, futures are up massively as the futures manipulation scam continues unabated) seem to know - the Fed buffet is now closed:

This all leaves us with portfolios that appear, more than at other times, to be hugging the benchmarks with no bold positioning. Some might suggest we’ve become closet indexers, but, on the contrary, we’re making a very active decision to run light on risk. At this point, we know this is not going to be a particularly high-yielding portfolio. You can only eat what’s in the cafeteria, and right now the cafeteria doesn’t have anything particularly appetizing in it.

We expect the next monthly set of data from the Total Return Fund to indicate that the fund is now in aggressive cash retention mode, taking advantage of the last few months of unbridled Fed generosity.