Putting Markets in Perspective


Our latest thinking on global economic drivers and financial markets.

Economy

PIMCO’s outlook for major economies over the next six to twelve months

  • Global

    Outlook

    Global economic expansion should continue, with world GDP growth in the 2.75%–3.25% range.

    Implications

    Consider active strategies that can nimbly react to changing conditions and take advantage of opportunities when volatility arises.

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  • U.S.

    Outlook

    Even as the Fed looks to move farther from the zero bound, inflation challenges linger.

    Implications

    With the Fed likely to hike rates gradually, consider maintaining an allocation to inflation-hedging investments as part of a diversified portfolio.

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  • Europe

    Outlook

    Solid growth momentum may give the ECB room to step back from accommodative policy.

    Implications

    Take a cautious approach to interest rate exposure in the eurozone and consider avoiding assets that rely on central bank support.

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  • Emerging Markets

    Outlook

    We see a fairly supportive external backdrop for EM with improving domestic conditions.

    Implications

    With diversification benefits in mind, consider an active manager who can build differentiated portfolios.

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Financial Markets

PIMCO’s outlook for three key financial markets with implications for investors

  • Fixed Income

    Outlook

    Rising rates may create opportunities to add alpha in fixed income.

    Implications

    Keeping interest rate exposure in mind, partner with managers who can optimize portfolios through yield curve positioning.

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  • Equities

    Outlook

    Value’s recent underperformance is likely to reverse amid broad-based economic growth.

    Implications

    Now may be the time to be contrarian and favor value stocks that may offer long-term upside potential.

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  • Mortgages

    Outlook

    Mortgage-related securities continue to be an area where we see value.

    Implications

    Consider adding a mortgage-focused strategy to diversify creditheavy bond portfolios and take advantage of timely opportunities.

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