PIMCO has published its new 6 – 12 month economic outlook for global markets and economies.
In PIMCO’s report entitled, Post Peak, authors Nicola Mai, Economist, Tiffany Wilding, Economist, and Andrew Balls, CIO Global Fixed Income at PIMCO have laid out a very detailed summary including the investment implications of the state of today’s global economy.
In the report they explain that higher yields – both nominal and inflation-adjusted – than have been seen over the past decade and cooling inflation make them more sanguine about the prospects for fixed income. In this environment, PIMCO says that it is looking to emphasize global investment opportunities and to diversify their sources of interest rate exposure across debt maturities and countries.
At current price levels, riskier assets such as stocks do not price sufficient downside risk for thepossibility of a deeper recession, in their view. However, they do believe that both growth and inflation have peaked. The authors also explain that they expect growth across developed market (DM) economies will slow to varying degrees, and in some cases to contract.
For a deeper dive into PIMCO’s economic outlook and investment implications, you can read their full report here Cyclical Outlook: Post Peak | PIMCO
