After the GFC, amid all the doom and gloom theories, there was one idea that got a lot of attention: The New Normal.
The phrase, coined by celebrity fund manager Bill Gross from PIMCO pushed the idea that the world had changed forever. The good ‘ol days were gone, lower returns were now the order of the day, and we just had to learn to live with it.
Gross argued that from now on, there’d be three major headwinds holding back returns and keeping a lid on asset prices – deleveraging, de-globalisation and re-regulation.
But 5 years on, how has it actually played out?