Pimco’s Gross: US Growth Won’t Top 2% This YearFriday, 05 Apr 2013 Pacific Investment Management Co.’s Bill Gross, manager of the world’s biggest bond fund, said the U.S. economy won’t expand more than 2 percent this year even with one or two quarters of faster growth. “A 2 percent ‘new normal’ economy is the best we can expect,” Gross
said in a radio interview with Tom Keene after a report showed employers
hired fewer workers than forecast in March and a decline in the size of
the labor force pushed the jobless rate down to a four-year low. The U.S. economy may benefit from improved prospects for energy and housing, although the impact of those industries will be limited to one or two quarters at best, Gross said. Pimco, based in Newport Beach, California, in 2009 coined the term
“new normal” to describe an era of lower returns, heightened government
regulation and shrinking U.S. clout in the world economy following the
2007-2009 financial crisis. “We haven’t invested in what we should have invested in,” Gross said. The private sector isn’t willing to invest in an uncertain environment where global aggregate demand is lacking, he said. Pimco, a unit of Munich-based insurer Allianz SE, managed $2 trillion in assets as of Dec. 31. Gross runs the $289 billion Pimco Total Return Fund. © Copyright 2013 Bloomberg News. All rights reserved. http://www.moneynews.com/StreetTalk/pimco-bill-gross-growth-economy/2013/04/05/id/498034?s |