Keep pulling the thread on Dan Ivascyn.
Based on current relative valuations, PIMCO believes there is a good chance that bonds will outperform stocks over the next five to 10 years.
Since the Global Financial Crisis, a strategy of buying the lowest quality credit, including private and public credit, has generated 7% more in annual returns than high-quality bonds.
PIMCO predicts the Federal Reserve is likely to cut interest rates at its upcoming December 2025 meeting.
PIMCO expects the U.S. economy to reaccelerate during the first half of 2026, with inflation remaining comfortably above the central bank's targets.
PIMCO's general view is that the Federal Reserve will likely cut interest rates by another 0.5% during 2026.
PIMCO forecasts U.S. GDP growth to be in the range of 1.5% to 2.0% for 2026.
Kevin Hassett is reportedly emerging as the front-runner for the next Federal Reserve Chair position.
The S&P 500 has generated an absolute annual return of approximately 15% over the last 10 years.
The Bloomberg Aggregate Index has produced an absolute annual return below 2% over the last 10 years, resulting in negative real returns after accounting for inflation.
The balance sheets of middle-income and higher households in the U.S. are the strongest they have been in several decades.
PIMCO is very bullish on housing-related investments in the United States and other global markets.
PIMCO's base case forecast is for U.S. home prices to moderate, with potential for steady real-term declines over the next several years in overextended markets.