If you are a child of the bull market, it’s time to grow up and become a chastened adult; it’s time to recognize that things have changed and that they will continue to change for the next – yes, the next 10 years and maybe even the next 20 years. We are heading into what we call the New Normal, which is a period of time in which economies grow very slowly as opposed to growing like weeds, the way children do; in which profits are relatively static; in which the government plays a significant role in terms of deficits and reregulation and control of the economy; in which the consumer stops shopping until he drops and begins, as they do in Japan (to be a little ghoulish), starts saving to the grave.
– Bill Gross, “On the ‘Course” to a New Normal”, Investment Outlook, September 2009
I agree with Bill Gross’s assessment.
For more, also see:
“Top Gun FP Client Note: A Secular Bear Market”, Top Gun FP, July 7, 2009
“What A Secular Bear Market Is And Why We Might Be In One”, Top Gun FP, May 7, 2009