PIMCO is almost more famous for coining “New Normal” than being one of the world’s largest asset managers. Just a few minutes ago, the BOE’s Haldane referenced the idea that we’re living in an era of low interest rates, low growth and low inflation.

In his monthly commentary, published today, PIMCO guru Bill Gross doubles down and says that the New Normal is the One Big Idea for our time and lays out what it means for asset prices. Some highlights:

  • The Bank of England will likely head the first of the G-7 countries to raise rates and explore where to stop at hopefully just the right spot
  • Stock market appreciation will slow significantly after QE
  • We expect bonds to return 3-4% over the next 5 years and stocks perhaps 4-5%