Bill Gross Monthly Investment Outlook: Private Eye

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Aug 02, 2010
PIMCO's Bill Gross published his monthly Investment Outlook entitled Private Eye. It contains some gross stuff so we would repeat here. Just the conclusion:
PIMCO’s continuing New Normal thesis of deleveraging, reregulation and deglobalization produces structural headwinds that lead to lower economic growth as well as half-sized asset returns when compared to historical averages. The New Normal will not be aided nor abetted by a slower-growing population nor by cyclical policy errors that thrust Keynesian consumption remedies on a declining consumer base. Current deficit spending that seeks to maintain an artificially high percentage of consumer spending can be compared to flushing money down an economic toilet. Far better to create and mimic other government industrial policies aimed at infrastructure, clean energy, more relevant education and less costly healthcare services.


Check the complete document yourself at pimco.com