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March 31st, 2010 
Genius Published: Wednesday, 31 Mar 2010 | 10:09 AM ET
By: Jeff Cox
CNBC.com
Investors should acclimate themselves to years of lower-than-normal returns in both stocks and bonds, Pimco’s Bill Gross told CNBC.
As part of the firm’s forecast of a “new normal” in the slow-growth economy, Gross, co-CIO at the largest bond management firm in the world, said returns probably will be half of the normal 8 percent or so annualized profits to which investors have become accustomed.
“We should expect less as opposed to more—new normal as opposed to old normal,” he said in an interview. “We should expect that the private economy is delevering on a global basis. That means consumption and household income growth will be less than it has in prior years.
“And that means ultimately in terms of risk assets, whether it’s stocks or high-yield bonds or even bonds themselves that those types of returns will reflect a slower rate of [...]
