A split U.S. Congress in 2023 will likely limit fiscal policy, but could be positive for equity markets.
With interest rates higher amid a challenging macro environment, we see a compelling case for bond allocations and are cautious about higher-risk investments.
Core inflation came in below expectations for October and should moderate in 2023, but likely with bumps in the road ahead.
Inflation is receding and real interest rates are climbing in EM after a year of tightening monetary policy.
The Federal Reserve’s November statement included dovish language, but Fed Chair Powell warned investors not to expect the Fed to stray from its full focus on fighting inflation.
The central bank noted that substantial progress has been made in withdrawing monetary policy accommodation, and expressed concerns around growth and policy transmission lags.
Core inflation in the U.S. outpaced expectations for September and may fortify the Federal Reserve’s hawkish resolve.
The OPEC+ plan to curb oil production complicates the global economic, inflation, and geopolitical outlook and will likely lead to higher prices for key commodities.
This is a critical time for investors and policymakers alike.
U.K. financial market volatility is likely to remain high, and the longer-term outlook likely depends on future monetary and fiscal policy.
The Federal Reserve released new economic projections suggesting interest rate hikes will be faster and larger than previously forecast.
We believe short-dated bonds can offer attractive yields, flexibility, and a means to proceed cautiously as central banks continue to raise interest rates.
The Federal Reserve may be pressured to target a higher terminal fed funds rate as it seeks to tame U.S. inflation expectations following strong price rises in August.
Widening participation in the Fed’s standing repo facility and bond buying programs could mitigate another liquidity crisis in the Treasury market.
Emerging market valuations appear attractive, but country-specific risks can be critical to monitor amid global inflation and rising interest rates.
In Jackson Hole, Federal Reserve officials unequivocally emphasized their commitment to bringing inflation under control – even as the U.S. economy slows.
The value of completion mandates for defined benefit plans depends on the stage of the de-risking journey.
The market contraction presents better opportunities than we’ve seen in years to generate income, which we balance against the need for resilience in the face of a potential recession.
As the European Central Bank leaves negative policy rates behind, attractive valuations herald a much-improved total return potential.
PIMCO’s Global Advisory Board discusses the longer-term outlook for geopolitics, inflation, and other macro themes.
Despite price declines in many sectors, the Federal Reserve may continue its hawkish approach.
The Federal Reserve affirmed its commitment to price stability, hiking its policy rate 75 basis points again and signaling more tightening to come.
Renewed growth in China’s manufacturing activity, coupled with softening developed market demand, should ease some supply-side pressures – but several other inflation risks remain prevalent.
June’s U.S. CPI (Consumer Price Index) inflation data likely set alarms blaring in the minds of Federal Reserve officials.
June’s U.S. inflation data will likely force central bankers into more restrictive territory – raising the odds of recession.
Amid stormy markets, senior securitized credits hold potential for resilient returns.
We examine key themes from our review of advisor fixed income portfolios over the past year.
To celebrate Pride Month, four PIMCO executives share their perspectives on inclusion and diversity in the workplace and the importance of visible representation.
The varied responses of individual countries to global inflationary pressures have contributed to elevated real-rate differentials between developed and emerging markets.
The war in Ukraine has widened global geopolitical fractures, and we see risks of deglobalization and more fragmented capital markets over the secular horizon.
The proliferation of semiconductors throughout our economy may drive more durable, less cyclical demand and earnings.
Research Affiliates discusses the intriguing long-term outlook for value stocks, and provides insights on the models that underpin its asset class forecasts.
Rising yields, wider spreads, and heightened market volatility are providing an attractive environment, but caution in credit selection is warranted.
Heightened market volatility has led to misconceptions about credit, in our view. We dispel four of them here.
Higher yields, wider credit spreads, and other common market reference metrics suggest relative valuations for muni bonds have become attractive.
We assess risks and potential opportunities for multi-asset portfolios amid late-cycle dynamics, higher inflation, rising interest rates, and geopolitical uncertainty.
The Bank of Canada embarked on a swift tightening path, but secular forces still weigh on the longer-run interest rate outlook.
Sanctions on Russia’s foreign currency reserves will likely stymie the rise of the Chinese renminbi as a competitor to the U.S. dollar.
Five commercial real estate sectors in markets across the globe have the potential to thrive in this environment.
The countries’ weight in global trade is relatively small, but outsize exports of raw and semi-finished goods may portend price hikes across a variety of industries.
While Beijing has set an ambitious growth target this year with a generous fiscal stimulus plan, new COVID-19 waves are adding to mounting headwinds amid a slowing global economy.
A framework for optimizing liquidity in alternative investments.
Supply chains set to become less dependent on China over time.
Home price fundamentals suggest appreciation will slow but remain resilient.
Their track record in periods of rising interest rates suggests municipal bonds could be well-positioned for this year’s market environment.
Russia’s invasion of Ukraine, the sanctions response, and the gyrations in commodity markets cast an even thicker layer of uncertainty on what already was an uncertain economic and financial market outlook before the onset of this horrific war.
The pandemic hastens the evolution of the DC plan landscape and challenges plan sponsors to evolve.
The U.S. Federal Reserve raised the policy rate at the March meeting and signaled more hikes to come given the risks from high inflation.
Russia’s invasion of Ukraine and the world’s subsequent sanctions and actions to curtail Russia’s access to the global financial system have thrown financial markets into turmoil.
PIMCO’s glide path for target date funds expresses the firm’s collective view on age-appropriate asset allocation that can help prepare defined contribution (DC) plan participants for successful retirements.