Believers & Sceptics: You don’t have to choose

Financial markets seem to be dominated by two camps: the believers see strong growth ahead and hence, are buying higher risk assets such as equities. On the other side, the sceptics have a far gloomier outlook and they are even pricing rate cuts in the U.S. So which group is right?

The good news is that one doesn’t have to choose as some investment strategies are designed to benefit from both stronger and softer markets.

PIMCO’s GIS Dynamic Multi-Asset Fund (DMAF), for instance, has a macroistic lens that helps us read and interpret what is happening and most importantly, what is most likely to happen.

Our conclusions determine our positions, from mainstream equities and bonds to the least explored corners of financial markets. We combine this macroisitic approach with thorough bottom-up research to then decide which specific companies or countries look attractive – and at what price. We have our own voice: our in-house rating of companies around the world often differs – about 1/3 of the time – from the assessment of the widely followed, leading rating agencies.

All this aims to help you avoid market panics and euphorias – you can read more about this in our next email. Until then, you may watch this short video about how PIMCO’s DMAF team uses our cyclical outlook to determine positions, or read PIMCO’s latest thoughts on where we are in the cycle: Three Key Takeaways From PIMCO’s Cyclical Outlook: Flatlining at The New Neutral

Learn More about DMAF

Visit the DMAF fund page for detailed information on performance and positioning.