mohamed el-erian

With all the varied estimations of the chances that the U.S. is headed into a new recession, someone must have gotten it right ... right? But whom?

Now, even over-the-top bears like bond giant Pimco are doing a bullish about-face, and that makes it tougher for fund managers to keep avoiding the stock market. If they start returning to a historical stock allocation, that could further boost equity prices.

If the agreement between congressional Republicans and President Obama is ratified, Pimco, which manages the world's largest bond fund, says the stimulative measure will contribute much to economic growth -- and to the deficit.

The CEO and co-CIO at Pacific Investment Management (PIMCO), Mohamad El-Erian, today told Bloomberg Radio he expects the Federal Reserve to keep interest rates low "for a long time" to heal a damaged financial system and an economy with no signs of rebound. PIMCO manages the world's largest bond...