Pimco may run the world's biggest bond fund. But that doesn't mean the company is universally enthusiastic about the bond market.
"Equities probably outperform bonds this year," Pimco market strategist and portfolio manager Tony Crescenzi said on Thursday's episode of "Futures Now." "Pimco would be fully invested in the S&P 500 this year."
"This may sound a bit different to hear from Pimco," Crescenzi conceded.
Yet Pimco's prediction about economic growth really leaves it with no choice but to prefer equities.
In the past, "we've focused on the idea of a 'new normal,' and we've been projecting growth of about 2 percent for a long time, and that's been where it's been," Crescenzi said. But now "we expect economic growth of between 2.5 percent and 3 percent in the United States this year. For Pimco, that's pretty high."
Of course, the "new normal" is the theory famously promulgated by Mohamed El-Erian, the recently departed former CEO and co-CIO of Pimco. In 2009, El-Erian presciently predicted that growth would remain unusually slow in the post-financial crisis period.
In a January appearance on CNBC, El-Erian said the "new normal" would soon end, and Crescenzi agrees that it's about time for that sluggish period to fade into the rearview mirror.
"PIMCO is projecting the old normal to return this year!" Crescenzi wrote enthusiastically in his notes to CNBC.