Four macroeconomic disrupters are likely to become even more pronounced over the secular horizon: China’s rise, populism, climate-related risks and technology, according to PIMCO in its Secular Outlook: Escalating Disruption report.
The firm believes investment success over the secular horizon will continue to be defined by being prepared for disruptions from a variety of sources and by actively pursuing the opportunities that arise when volatility occurs. This is even more important now that markets will have to grapple with the longer-term consequences of the pandemic shock, its propagation, and the policy responses.
The two key swing factors that could produce upside or downside surprises are (1) the health situation — renewed infection waves versus eff
