PIMCO's Bill Gross: New Normal 3% Yields and 3% Stock Returns

Forbes reports:

Pimco's Bill Gross and Mohamed El-Erian have touted their "new normal" view for more than a year. The phrase has certainly caught on with financial pundits, but even though many people use the words few understand the idea, Gross complains. Commentators and investors alike seem to think markets will soon return to the way they were before the financial crisis, a new version of the good old (normal) days.

That's not Pimco's new normal at all. In Gross's July investment outlook he writes that investors have yet to accept the prospect of "half-size economic growth induced by deleveraging, reregulation, and deglobalization."

Remember, this is the world's biggest bond fund manager saying this.