Geraldine Sundstrom, managing director and portfolio manager, discusses the importance of equities as an asset class when investors believe in both global growth and inflation.
Mihir Worah, CIO Asset Allocation and Real Return, discusses several major transitions currently underway in the global economy and details three of PIMCO’s high-conviction asset allocation views.
The current environment has led many investors to reduce their expectations for future returns from traditional assets such as developed market stocks and bonds. Indeed, it raises the question of whether any attractively priced assets remain. That is, what is still “cheap”?
Given our base case of modest global growth aided by a fiscal boost in the U.S., we believe positive returns can still be earned via targeted risk-taking.
Comparing P/E ratios across asset classes shows the perceived certainty of U.S. Treasuries coming at an expensive price.