14 jun. 2012

PIMCo : equity focus : Invest gobally do not seat on the sidelines

Three Years and Counting

By Neel Kashkari
Key Points:
  • Given our outlook that moderate inflation is the outcome with the highest long-term probability, we believe equities should be a meaningful part of a diversified investment portfolio.
  • In addition to muted economic growth, record low interest rates, and sustained high unemployment, extraordinary equity market volatility has been a repeated feature of the past three years.
  • As heightened volatility persists, many equity investors remain on the sidelines. We think a better investment approach is to invest globally, across asset classes, reflecting the likelihood of the various outcomes.
  • We believe managing against downside shocks is enormously beneficial to compounding attractive returns over the long term. Equity investors should continue to focus on higher-quality companies with strong balance sheets that are selling into higher-growth markets, including those that pay healthy dividends.
Full article : http://europe.pimco.com/EN/Insights/Pages/Three-Years-and-Counting.aspx