"The Resilient US Economy: Debunking 'The New Normal' Myth"

The concept of "The New Normal" emerged after the 2008 financial crisis, with predictions about corporate profits, government regulation, and consumption growth. Bill Gross extended these ideas, forecasting slow economic growth and stagnant corporate profits, leading investors to flock to bond funds like Pimco Total Return. However, the outcome was worse than expected, with equity investors redeeming their funds and flocking to bond funds, resulting in disappointing returns. The article emphasizes the danger of discounting the power of precedent and altering investment practices based on the belief that "this time will be different."