Salient to Investors:

Bill Gross at Pimco said:

  • The economy will grow no more than 2 percent in 2013 even with one or two quarters of faster growth. A 2 percent new normal economy is the best we can expect. The impact of energy and housing will be limited to one or two quarters at best. Job creation won’t exceed 125,000 in Q2 as structural influences including technology, demographics and the transfer of jobs to Mexico and China are difficult to counter with monetary policy.
  • The US will benefit from improving conditions in Europe and Japan. Draghi may lend directly to weak small businesses in the next 6 months, and at some point the ECB will go all in as well.

Mohamed El-Erian at Pimco said it’s getting much harder to get growth out of the economy, and the lowest monthly job creation since June 2012 and the lowest participation rate since 1979 makes escape velocity less likely.

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