Maybe the firm’s growth forecast for the U.S. is legit. Maybe we really are “head[ing] back to a new destination.” OR MAYBE SOMEONE JUST CAN’T STAND TO HEAR A PHRASE THAT REMINDS HIM OF SOMEONE WITH WHOM SOMEONE SPENT MANY A LATE NIGHT EATING GREASY TAKE OUT AND STANDING IN FRONT OF A WHITEBOARD WHILE TRYING TO COME UP WITH THE PERFECT NAME FOR THE CONCEPT…WHO SOMEONE RUES THE DAY HE EVER MET..
The era of sluggish growth characterized by Pacific Investment Management Co. as the “new normal” is ending, according to one of the firm’s deputy chief investment officers. “Our view is that what you’ll see in next the few years is we’re going to head back to a new destination,” Scott Mather, head of global fund management and one of Pimco’s six deputy chief investment officers, said in a Bloomberg Surveillance interview with Tom Keene and Michael McKee. The firm’s forecast for U.S. growth has increased to the high 2 percent level, “which is better than sub-2 percent level of growth that we’ve experienced for several years,” Mather said. Pimco, manager of the world’s largest bond fund, outlined the “new normal” scenario at its annual forum in May 2009 after the worst financial crisis since the Great Depression plunged the U.S. into recession. The Newport Beach, California-based firm’s co-founder and chief investment officer Bill Gross and the firm’s former Chief Executive Officer Mohamed El-Erian popularized the term and predicted the economy would expand at a below-average pace for the next three to five years as growth in developed countries slows and amid the “heavy hand of government.”
Earlier: Bill Gross Wants El-Erian To Say It To His Face; Bill Gross Doesn’t Understand Why El-Erian Won’t Just Be A Man, Defend Himself, And Violate His NDA; Mohammed El-Erian May Have Left Pimco Because Of A Chronic And Debilitating Condition That Caused Him To Regularly Look People In The Eye; Don’t Get Caught On “His” Side: A Survival Guide For Pimco Employees; Pimco Investor Considering Pulling Out Over Secretariat’s Erratic Behavior, Some Other Stuff; The New Bill Gross Doesn’t Bite (And If He Does It’s Only Because Old Habits Die Hard); Cheesecake And Kisses: Bill Gross Reflects
1. Also possible that he banned the words Mohamed, Mo, and derivatives thereof around the office. NOT THAT ANYONE SHOULD BE USING THE SPOKEN WORD ANYWAY.↩