Pacific Investment Management Company (PIMCO) is a US firm that manages circa US$1.9 trillion in assets.
Some points of interest from their latest quarterly outlook (bolding mine):
- “a strong global recovery in 2021 amid significant fiscal support, accommodative monetary policy, diminishing lockdowns, and accelerating vaccinations”
- an expected temporary bump in inflation in the coming months
- inflation generally will remain below central bank targets over the next one to two years
- markets may remain focused on inflation risks in the near term, contributing to elevated volatility
We seek to maintain portfolio flexibility and liquidity to be able to respond to events as they unfold
We see opportunities in COVID-recovery sectors, including housing, industrial/aerospace, and select banks and financials.
- PIMCO expect global economic growth circa 6% this year
- An on hold for longer Fed translates to the firm liking continued modest upside for the USD
- Stays overweight equities (preference for US and Asia stocks), preference for cyclical vs. defensives