Pimco Says Invest Like It's Late Cycle, Not End of Cycle

The video discusses the current market framework, highlighting the low probability of a recession in the next 12 months despite global economic slowdown. It emphasizes the importance of investing in high-quality, liquid assets and avoiding speculative sectors. The discussion covers regional investment biases, suggesting caution in emerging markets and a focus on defensive sectors in the US. Specific investment opportunities are identified in the US midstream MLP sector, UK banks, and Chinese property developers. The video also advises caution in the leveraged loan market due to falling underwriting standards.

What is the estimated probability of a recession in the next 12 months according to the speaker?

• 20%

• 15%

• 25%

• 10%

Which regions are considered ready for a bounce, according to the speaker?

• Only Europe

• Only the US

• US and Europe

• Emerging markets and overseas markets

What sector in the US is identified as an opportunity due to its earnings based on volume production?

• Retail

• Healthcare

• Midstream MLP

• Technology

What is the speaker's view on the leveraged loan sector?

• It is a safe investment

• It should be approached with caution

• It has high underwriting standards

• It is the best sector to invest in

Which country's property developers are seen as an idiosyncratic opportunity?

• India

• China

• Brazil

• Russia