PIMCO: 6 trends and 6 risks for global markets

PIMCO has released a report designed to help challenge their current investment views and shape their thinking on investment markets for the years ahead. The report identifies 6 trends they believe will drive global markets. “The six global trends we identify suggest the baseline of a gradual rise in yields/re-establishment of term premia in global fixed income markets. The six risks suggest that this will be a slow and, most likely, bumpy secular journey.” Some of the trends identified include 1) Converging to “New Normal” growth rates in emerging and developed economies 2) Evolving to a re-regulated, better capitalized banking system 3) Moving from energy scarcity to energy abundance 4) Accelerating from deflation towards inflation in major economies 5) Shifting from a global savings glut and toward narrowing global imbalances amid stronger global demand. 6) Implementing better economic policy in key emerging and developed countries. Click the PDF below to access the full report