Investment Outlook: Allentown

William Gross, managing director of Pacific Investment Management Co., which manages a global mutual fund compares the current state of the economy to Billy Joel’s 1982 song “Allentown.” We’re all Allentowners now. Granted, 90% of the workforce is still reporting for work on time, but our standard of living, our confidence in the future – we’re standing in line in Allentown. Lost in the policy debate surrounding the elections and the subsequent demonization of the Federal Reserve’s Quantitative Easing (“QE2”) policies has been any recognition of why we no longer live on Ronald Reagan’s shining hill or how we might possibly reclaim higher ground.