Bill Gross

Both from the standpoint of stocks and bonds, an investor wants to go where the growth is.

Slow growth and inflation have a tendency to accompany large deficits and increasing debt as a percentage of GDP.

In terms of economic growth, PIMCO originated the famous phrase the 'new normal.'

Bond investors want growth much like equity investors, and to the extent that too much austerity leads to recession or stagnation then credit spreads widen out - even if a country can print its own currency and write its own cheques.