New Normal … Morphing
PIMCO’s investment professionals gatherd for three days to discuss the three-to-five year outlook for the global economy and markets. Needless to say the role and actions of central banks across the globe was a recurring theme over the “Secular Forum.” Specifically, that in the process of buying time for economies to heal, they have inserted a disconnect between market prices and underlying economic and financial fundamentals.
Despite their efforts, central banks are still unable to deliver sufficently robust growth and jobs to Main Street. But they have been investors’ best friends. If growth fails to materialize over time, reality will snatch back the returns from investors in the period ahead. The underlying questions is how and when would improved funadmentals validate artificial prices in a globally consistent and sustainable fashion.
To read more about PIMCO’s recent Secular Forum please CLICK HERE.