IBTK - Cyclical Outlook Key Takeaways: Inflation Inflection

• PIMCO’s baseline outlook for the cyclical horizon has the global economy continuing its uneven recovery before shifting to a more moderate pace of above-trend growth in 2022.
• With the pandemic receding across much of the world, policy support has also likely peaked and will turn into an outright drag on growth in the months ahead.
• Since we see fewer high-conviction opportunities and believe valuations are generally rich, we think it makes sense to be patient and maintain liquidity and flexibility in our portfolios to respond to opportunities.

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