The Fragmentation Era

Summary

• Elevated deficits mean less room to spend during difficult times, amplifying economic risks and boosting reliance on central bank monetary policy.
• In a multipolar world, changing trade dynamics and policy priorities may alter demand for U.S. assets relative to other countries.
• The fragmentation of trade and security alliances is becoming a potent source of volatility, affecting which countries and industries will thrive or struggle.

Korrawin

With the world order in flux, investors can look to fortify portfolios by diversifying across global markets and capitalizing on attractive, high quality yields.

Key takeaways

For over 40 years, PIMCO’s annual Secular Forum has let us step back