Does the stock market volatility of the past few days prove Bill Gross
right about the "new normal" of low growth and high unemployment? Bloomberg
's Sree Vidya Bhaktavatsalam ponders
the current standing of the Pimco [see profile]
co-chief investment officer's idea.
Bloomberg notes that the Federal Reserve, BlackRock [see profile]
chief Larry Fink
, and BlackRock fundamental fixed income chief investment officer Rick Rieder
now all seem to anticipate low growth in line with Gross' new normal idea, which Gross first outlined in May 2009.
The wire service also tallies a list of new normal's original skeptics, including: Fisher Investments [see profile]
CEO Kenneth Fisher
; famed Legg Mason [see profile]
stockpicker Bill Miller
; U.S. Council of Economic Advisers chair Christina Romer
; former White House economic advisor Larry Summers
; and Fink himself, as recently as January.
Fisher -- still a non-believer regarding the new normal -- and Pimco CEO Mohamed El-Erian
both offered some thoughts for the article.
Neil Anderson, Managing Editor
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