Posted 2/21/2024, 3:07:55 PM
PIMCO Cautions Markets Too Upbeat on Rate Cuts, Shifts to Higher-Quality Assets
- Markets too optimistic on pace of rate cuts and risk of recession or inflation rebounding, says PIMCO
- Shifted assets into higher-quality, resilient securities that could gain value amid uncertainty
- Expect inflation to decline further but markets overly optimistic on speed of rate cuts
- Maintain some TIPS exposure to hedge against inflation potentially reaccelerating
- Diversifying interest rate exposure beyond U.S. into other high-quality markets like Europe and UK
