PIMCO recently published its Cyclical Outlook for global growth, inflation, trends and transitions likely to affect the investment landscape in 2017. Here are some key takeaways.
We wonder if market participants – like business and consumer survey respondents – may be too focused on Trump’s pro-growth policies and not focused enough on the more controversial aspects of his agenda.
With Donald Trump’s election as U.S. president, we have entered a new phase that I call a “cold currency war.”
With deregulation seemingly high on the agenda for President-elect Donald Trump, the fate of the Department of Labor’s “fiduciary rule” is now unclear.
We think the recent modest deceleration in core inflation is an artifact of residual seasonality, holiday discounting and some deceleration in medical costs that may prove temporary.
The Fed’s “dot plot” moved unmistakably in the hawkish direction for 2017.
We see four key themes for U.S. equity market investors in 2017.
Each of the six Republican presidents since the Second World War presided over a recession, and some more than one.
Italian banks are burdened by bad loans, but we believe the cost to revive the banking sector is manageable.
PIMCO interprets the ECB’s decision to lower the asset purchase rate as acknowledgement that 2% is an ambitious inflation target to achieve.