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 Almost all of Wall Street’s calls were wrong in 2012

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RR Phantom

RR Phantom

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Almost all of Wall Street’s calls were wrong in 2012 Vide
PostSubject: Almost all of Wall Street’s calls were wrong in 2012   Almost all of Wall Street’s calls were wrong in 2012 Icon_minitimeMon Jan 07, 2013 7:01 pm

Pacific Investment Management'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 $US1.9 trillion, correctly foresaw that global expansion would remain sluggish. The world’s economy probably grew 2.2 per cent last year, below the 3.2 per cent average of the decade before the 2008 financial crisis, according to World Bank data compiled by Bloomberg.

Pimco’s outlook, announced in 2009, was less accurate for financial assets as unprecedented stimulus by central banks drove up demand for stocks and bonds. Fixed-income securities around the world returned more than the average of the past 16 years in 2012 and the value of global equities increased by $US6.5 trillion as the MSCI All-Country World Index rose 13.4 per cent.

Read more: http://www.smh.com.au/business/new-normal-doesnt-tell-the-full-story-20130107-2ccfg.html#ixzz2HKzPk4Hx

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