Erin Browne, multi-asset strategy portfolio manager at Pacific Investment Management Co. (Pimco), says easing financial conditions creates “a little bit of a pickle” for Federal Reserve monetary policy. She speaks with Lisa Abramowicz on “Bloomberg The Open.”
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BREAKING: Recession News
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Investors looking for a safe haven during an economic downturn should consider turning to bonds, according to Pimco’s global investment strategist, Erin Browne. In her op-ed for CNN Business, Browne argues that bonds generally outperform in times of recession, providing steady income and downside protection.
Bonds, unlike stocks, are fixed-income instruments that offer a set interest rate and repayment date. As such, they are less risky and less volatile than equities and can offer a reliable source of income during difficult economic times.
Browne points out that in the past six U.S. recessions, bonds have outperformed stocks. The last recession in 2008 saw bond prices rise as investors looked for safe havens amid the financial turmoil.
Furthermore, the Federal Reserve has cut interest rates in response to the COVID-19 pandemic, which has led to an increase in bond prices. This trend is expected to continue as the economic fallout from the pandemic drags on.
However, Browne warns that not all bonds are created equal. Investors should be wary of low-yielding bonds, which might not offer adequate protection during a recession. Instead, they should look for high-quality bonds and diversify their portfolios across different sectors to reduce risk.
Additionally, Browne suggests that investors look beyond traditional bond investments and consider alternative options such as municipal bonds or corporate bonds with strong credit ratings.
In conclusion, as the global economy faces unprecedented challenges, investors can find solace in the relative safety of bonds. By carefully selecting high-quality bonds with adequate diversification, investors can find a reliable source of income and downside protection during a recession.
Already peace without change the situation end lose life because of impasse
We get it! The fed is super cereal ! At least the assholes are taking responsibility for the shitty paint job so far?
As an elder millennial, one of the few advantages is having lived through the Great Recession. My advice. Reduce unnecessary expenses, increase your savings by investing in financial markets and do not sell. One thing I know for sure is that diversifying your income can help insulate you from much of the craziness going on in the world.
How does vanguard fintech architecture multidimensionally impact the 'correlation' inadequation during the period in question, profitwise?
Thanks for the update and keep doing what you do. My journey in the current market has taught me a lot of lessons, at the top of that list is that it never pays to live above one's means. I have managed to grow a nest egg of around $600k to a decent 7 figures in the space of a few months. Sad to say but a lot of us have poor money management skills. My 2 cents -get an advisor to keep you accountable and aid you make better decisions, Fxkathy Baldwin has been helping me a lot, all through my journey. I find it better to pay a little bit more for peace of mind than worry about money or market trends and still get burned.
These clown buying duration now are going to cause the economy to tank into a deeper recession. They’re trying to force the FED to stop raising. The pressure isn’t working. Powell has not backed off. Gluck to everyone.
There will be no recession
They will be cutting rates when inflation goes negative next year.
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problem with high quality corporates is that their higher prices already reflect their quality. it's not like everybody else is not thinking the same. she should know this and know this very well. that's the problem with active management. too many active managers.
Pimco is one of the dirtiest players out there – only an idiot would give them money.