- 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.
For further details see:
Cyclical Outlook Key Takeaways: Inflation Inflection