The Prediction of a New Normal, Reviewed
It was correct about the economy, but not about shareholder motivations.
Bad Moon Rising
The most-cited economic forecast of this millennium has been 2009’s “New Normal” prophecy, which posited that this time, for once, was indeed different. The economic future would differ sharply from that of the past. As many people seized upon the label, there was no single definition of the New Normal. However, a March 2009 missive from McKinsey lays out the main elements:
1) Sluggish growth in the United States and Europe.
John Rekenthaler does not own shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.