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.”

Likely? No. Possible? Yes.1 The least crazy thing Secretariat has done re: El-Erian in the last two months? You know the answer to that.

Pimco’s Mather Sees Clear Departure From ‘New Normal’ [Bloomberg]

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.

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Comments (12)

  1. Posted by Guest | April 25, 2014 at 3:55 PM

    new destination = new normal?

  2. Posted by Guest | April 25, 2014 at 3:59 PM

    "high 2 percent level, which is better than sub-2 percent level"

    "new destination" = [new normal + 1%]

  3. Posted by Guest | April 25, 2014 at 4:00 PM

    wow. they just get more desperate with each press release.

  4. Posted by InfiniteGuest | April 25, 2014 at 4:03 PM

    As they head back to a new destination, I, for one, hope they get the chance to rediscover things they never knew before.

  5. Posted by Scarecrow | April 25, 2014 at 4:05 PM

    “Our view is that what you’ll see in next the few years is we’re going to head back to a new destination,”

    If you're going back to someplace, it's not new. OTTNC.

  6. Posted by J. Shazar | April 25, 2014 at 4:13 PM

    It's all about the journey.

  7. Posted by M. El Erian | April 25, 2014 at 4:15 PM

    Heh heh…pfff

    I live in their head.

  8. Posted by Turnip Truck | April 25, 2014 at 4:49 PM

    He meant a GNU destination. The Serengeti.

  9. Posted by American Debts | April 30, 2014 at 9:49 AM

    PIMCO heading to a place of new desperation.

  10. Posted by Abushanabkizb | May 16, 2014 at 8:02 PM

    Actually not as Pimco and Bill Gross are moving forward with company business, while Mohamed now spends his time blogging about starbucks coffee and tweeting about internet connections in hotels, all while attributing his resignation to his minor child. If you knew him personally (not to say he truly knows himself) and were watching him closely these past few weeks, he's the one now obssessed with keeping himself relevant in the media and who's highly insecure at the prospects of likely never earning as much $$$ again. And he's trying desperately to get Stanley Fisched to offer him a job at the Fed. As someone who also knows him well since childhood has noted: Mohamed embodies the perfect mix of John Dean (blind ambition), Anna Nicole Smith (addicted to self-promoted publicity), and Joey Goebbels (mouth wide open to the dead end). It's Mohamed's head which is still spinning and most likely will for a long time to come!

  11. Posted by Abushanabkizb | May 16, 2014 at 8:05 PM

    KUDOS BILL … move onward and forward now that Pimco is better off without El-Erian.

  12. Posted by Investment Guy | June 6, 2014 at 3:48 PM

    They Certainly are better off without El-Erian. Whether that will translate into more growth as is forecasted, idk…