Reported 4 months ago
Pacific Investment Management Co. (Pimco) forecasts that fixed income will outperform other asset classes due to a 'generational reset higher in bond yields.' Pimco's outlook suggests that active fixed income investments could fare well in the absence of recessions, with potential for even better performance in such scenarios. The asset manager emphasizes the attractiveness of bonds compared to cash as prices rise and inflation recedes. Pimco's analysis indicates the possibility to build portfolios with yields of 6% to 7% over three to five years without significant risks. The article further discusses market dynamics, valuations in stocks favoring bonds, and potential future economic trends impacting bond investments.
Source: YAHOO