No New Normal as Stocks to Bonds Rallied Like the 1990s

Pacific Investment Management Co.’s new normal, the prediction that global economic growth and investment returns would tumble, is proving half right.

Bill Gross and Mohamed El-Erian, the co-chief investment officers of the Newport Beach, California-based money management company that oversees $1.9 trillion, correctly foresaw that global expansion would remain sluggish. The world’s economy probably grew 2.2 percent last year, below the 3.2 percent average of the decade before the 2008 financial crisis, according to World Bank data compiled by Bloomberg.