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Pimco dials down risk as global economy, policy risks pick up 

June 1, 2017

Jamie McGeever, Reuters

"The limited ability of central banks to counter a slowdown in global growth and the rising likelihood of a U.S. recession are among the risks that warrant a more cautious approach to investing in the coming years, U.S. money manager Pimco said on Thursday.

The global economic and monetary policy environment still remains conducive to investors seeking the relatively high returns from risky assets like stocks and emerging market currencies, but high valuations and tight spreads warrant a greater degree of caution.

"Valuations look fair, and in some cases rich. The bottom line is we will have a focus on capital preservation ... and it's time to be cautious in terms of our portfolio positioning. Having a little less risk in our portfolios makes sense," said Andrew Balls, chief investment officer, global fixed income."

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