Pimco Predicted Fed Would Do Just What It Said

Bond prices and yields move inversely, so as interest rates go down prices go up. I've always wanted to write that. Also it serves as nearly sufficient background for this morning's big Reuters story about giant bond fund manager Pimco, which bought bonds; then the Federal Reserve embarked on a massive program of lowering interest rates, so the prices of Pimco's bonds went up, and its funds made a lot of money. Turns out that the best time to buy bonds is just before the Fed embarks on a massive program of lowering interest rates. Pimco did that. Smart!