is challenging Bill Gross
' 'new normal' forecast, Bloomberg
reports. The TCW alumnus tells Sree Vidya Bhaktavatsalam that there won’t be any “new normal” to guide investors until policy makers repair the damage caused by the financial crisis.
“I think ‘no normal’ is a good phrase, as opposed to ‘new normal,’ ” he said, adding that he disagreed with Gross' idea that the economy will revert into "some quasi-similar paradigm, some sort of new thing -- no way.”
Gross and Mohamed El-Erian
, co-chief investment officers at Pacific Investment Management Co.
], used the catch phrase “new normal” to forecast that the U.S. will endure below- average economic growth of two percent or less for the next three to five years and unemployment peaking at 10.5 percent to 11 percent, from 9.6 percent in August.
However, the DoubleLine
] founder doesn’t totally disagree with Pimco’s outlook. Rather, he noted that “new normal” fails to recognize that all previous economic and investment assumptions have been permanently altered by the financial crisis, according to the aricle.
Fundsters interested in Gundlach's own forecast may want to check out the rest of the article.
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