Bill Gross recap: What to expect from his new Janus fund — plus a bandage 11:00 am Welcome Thanks for joining us.We’re just about to get started here with the webcast.The webcast cover page bills this as “A Janus Capital Exclusive with Bill Gross,” though news reports are saying it’s called staying alive.Either way, you can sign up here.In the meantime, read this story about Pimco.11:02 am Kicking off And we’re kicking off.Already 175 inquiries have been submitted through the webcast, the host notes.Dick Weil is starting it off by saying that “it’s shocking to a lot of the world” that Bill Gross has joined Janus, but that they have a 20-year relationship together.He can’t think of any investor he respects more than Bill Gross 11:06 am Like a doctor Janus Capital CEO Dick Weil is saying that Bill Gross is very committed to his clients, in the same way Weil’s father, a doctor, was committed to his patients.Gibson Smith, CIO for fixed income at Janus, will maintain the core fixed income business.

Bill Gross will manage in an unconstrained strategy as a complement to Gibson.“In an unconstriained format, he will not only be able to express his views across” a wide space, but “express it in a lower duration space.” He emphasized the word “complement” to the work Janus is already doing.11:10 am Second life at Janus And now, Bill Gross on his decision to join Janus: “Like any successful marriage we chose each other.” He thinks it will work out very well.It was important to Gross that he not disrupt the home organization of Janus.He says it’s a perfect fit — it allows him to return to the basics while discarding with the executive duties.Gross says it’s been a rough few months.He refers to rough seas from his time in the military.He says “Smooth sailing” with Janus will be more likely, and he is comfortable with Janus as his “home port.” In James Bond speak, “You only live twice,” Gross says.11:14 am Structural headwinds On to economic outlook from Gross: The global economy is slowing down, as the IMF reaffirmed this week.

Aggregate demand is slowing down.Underneath that, there are several structural forces — not cyclical — that will be with us for a while.It’s similar to the biblical concept of seven years of fat, seven years of lean.Here are some of the forces causing that.Too much debt Demographic shifts as boomers retire Technological innovation means less hiring Globalization, where jobs migrate away from the U.S.buying bitcoin for silk road11:17 am Market effect What does that mean for markets?bitcoin pizza hutSlow growth isn’t great, but monetary policy-makers did a good job of avoiding “implosion.” Now the question is where interest rates are headed, because that has impacts on all asset classes.bitcoin armory problems

We have zero interest rates, but it has effects of distortion.Right now we’re seeing distortions that people want to affect.11:18 am Bandaid It’s worth noting that Bill Gross has a bandaid on his left cheek.11:19 am ‘Structural forces are going to be with us for a while’-Gross #billgross — David Gaffen (@davidgaffen) October 9, 2014 11:21 am Low returns 10_Year

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So rates will stay low for a while.ethereum fiatThat means “what you see is what you get,” Gross says.aggiungere bitcoin2.50% to 4% is a fair conclusion for what you will get on the 10-year U.S.armory bitcoin setupTreasury yield, based on where we’re at.ethereal knives chain

Yields are artificially low.It’s the same with stocks.“I don’t see a significant bear market, but the returns of 2-3-4% are historically low and investors should recognize that.” 11:28 am The Janus Fund What does that mean for the Janus Unconstrained Bond Fund?Gross says we shouldn’t confiscate our principal.bitcoin vs onecoinWe should instead look to lessen duration.bitcoin quantJanus will have a 1 to 2 year duration, which is very short compared to more traditional bond funds.Moving outside the U.S.— to spots like Mexico and other opportunities — will be one benefit of the fund.Unconstrained basically means “look for opportunities everywhere,” he said.He wants to “put together in a portfolio that may not go down.It should be a more defensive strategy.” 11:32 am Differences with Pimco The biggest difference between Bill Gross at Pimco and Janus?

The smaller size will be beneficial in that “the Street doesn’t follow your trail.” That likely refers to the fact that because the Pimco Total Return Fund was so large, it was often difficult to maneuver in the market.He says Janus has sufficient size, but isn’t too big for its own good.The above pic is a screenshot from the webcast.11:35 am Gundlach Bill Gross continues to talk about the need for a compact fund.That’s a good time to bring in a story published recently by Reuters in which DoubleLine Capital’s Jeffrey Gundlach reportedly told Gross his fund had gotten too big, to which Gross agreed.11:36 am Webcast over With that, the webcast concludes.We should be receiving Gross’s investment outlook shortly.We’ll continue to put some tidbits of it into this live blog.11:39 am Reaction Here’s one reaction to the band aid on Gross’s face.“You should see the OTHER fund!”MT @pkedrosky: Bill Gross sporting a band-aid in first post-Pimco interview./3p10ODCS4u — Ivan the K™ (@IvanTheK) October 9, 2014 11:45 am What is duration?

So what does it mean that the fund plans to run with a duration of 1-to-2 years?Well, duration refers to the sensitivity of a given bond to rising rates.The securities that are most sensitive to rising rates tend to also pay out at higher yields, on the balance, but they could also get walloped if the Fed hikes rates quickly.Short duration, as is the case with the Janus fund, means the sensitivity is lower, but you’re looking among securities that are likely to be lower yielding.If you’re interested in learning about how to maximize your income in a particular duration, read this interview with Jeffrey Gundlach.That’s one of the benefit of an unconstrained fund.It’s not tied to a specific benchmark, so it can go pretty much anywhere that the fund manager wants it to.11:49 am Investment letter The first investment letter from Bill Gross is now out.You can read the full thing here, but we’ll parse it out in the live blog.His traditional beginning-of-letter story is about dancing with his wife, so you’ll want to stay with us.

Bill Gross’ first outlook for Janus includes a 500-word essay on how he never dances with his wife https://t.co/Qcm3mAowjm — Mark Gongloff (@markgongloff) October 9, 2014 11:51 am Leaving Pimco First things first.Gross really wants to put the Pimco matter to rest.Yeah, why are people still talking about it anyway?No big deal: “Pimco is a great firm with lots of great people, and Allianz was a fine owner for many years.But slowly and with great hesitation, I came to understand that it was time for me to leave.It happens sometimes to founders!But that is water under the bridge, as they say.I don’t plan to address it further.Now let’s talk about the future.” 11:57 am Dancing queen And now the truth comes out: in addition to not owning a cell phone, Bill Gross has never danced with his wife: “Happy as we were for all those years, there was always something missing, a trivial last puzzle piece to be sure, but a noticeable one nonetheless, at least to me: We had never danced!

Even more baffling considering his wife, Sue, was a dancing machine:  “Every so often Sue had hinted of her “disco” years.” So the dance finally happened a month and a week ago, and it was a picture-perfect fairy tale.“Midnight came as it does in most fairy tales, but I wondered no more what I had missed in the years before we had met and the 30 years since.” 12:00 pm Here comes the pivot “Picture perfection or fairy tale endings do not describe the global economy or even its financial markets more than five years after its Minsky/Lehman moment.bond and equity markets have been thrust into a seemingly safe outer orbit, the same cannot be said for other developed and developing nations.” 12:04 pm Nervous dancing So the global economic dancing is characterized by nervousness.Why, you should buy into an unconstrained bond fund of course, says Gross… “I have the following tough love advice – somewhat resembling the counsel given to me in recent weeks: there is a new financial era.

Accept it and modify your behavior accordingly, so that your future is safe, secure, and you look forward to a brighter tomorrow.” His other suggestion to get through these tough years: “What might be applicable for most generations, however, is an ‘unconstrained strategy’” 12:10 pm Reflection So there you have it, Bill Gross is back to his same old self, zany letters and all (read some more good ones here.)What’s more, his fundamental economic outlook seems very much to resemble the one he helped create at Pimco, known as the new neutral.Pimco has also said it doesn’t plan to change it’s economic forecasts, so it will be interesting to see how their funds compare over time, given that they are investing using the same methodology.The Pimco Total Return Fund bled assets in September while The Janus Unconstrained Bond Fund took in investor money, as you might expect.Thanks for joining us.That’s it for the liveblog.12:16 pm More reading But one last post before we sign off.

Here’s some additional reading about Bill Gross, Janus, and Pimco: New Pimco fund boss defends Total Return’s immensity Jaffe: How do you know if your fund manager has ‘lost it’?Weidner: Is the ‘bond king’s’ reign really over?Bill Gross, Janus Capital, Pimco « Previous The \’euroglut\’ could hammer the euro, hold down U.S.interest rates and drive global markets Next » Stock market live blog recap: Dow erases 2014 gain; Nasdaq hammered Story Conversation Commenting FAQs » The Tell is MarketWatch’s fast and engaging look at trends and themes in the day’s markets.Drawing on our reporters, analysts and commentators around the world, as well as selecting the best of the rest online, The Tell is all about the pulse of the markets through news, insight and strategic information to help you make the best investing decisions. Follow The Tell on Twitter @thetellblog Search MarketWatch Blogs Search The Tell5 ZACKS Investment Research blogMarketWatch BlogsBehind the StorefrontCapitol ReportEncoreEnergy TickerHealth ExchangeNeed to KnowTax WatchThe Cody WordThe MarginThe Tell Also on MarketWatch Blogs Fed interest-rate decision and Janet Yellen press conference: live blog and videoCAPITOL REPORT Amy Pascal's departure isn't the only good news at SonyTHE CODY WORD No driver, no problem.