PT - JOURNAL ARTICLE AU - Paul McCulley TI - A Brave New World AID - 10.3905/jpm.2004.442636 DP - 2004 Aug 31 TA - The Journal of Portfolio Management PG - 124--130 VI - 30 IP - 5 4099 - https://pm-research.com/content/30/5/124.short 4100 - https://pm-research.com/content/30/5/124.full AB - Gains of the 1980s and 1990s in stocks and bonds arose from a bull market in capitalism and falling inflation, conditions that do not appear on today's horizon. Instead, the years ahead promise to be marked by a bull market in government and the end of a 20-year period of disinflation. In this environment, monetary policy will assume different aims and employ different strategies. Adjustment to the prospective weights between public and private sector in the mixed economy of the U.S., as well as to a new monetary policy regime, will be an essential requirement for investment success in this Brave New World.