PIMCO Cyclical Outlook
This paper by Saumil H. Parikh of PIMCO discusses the impact in 2012 of further Eurozone deleveraging. It is his view that Eurozone deleveraging will slow the global economy over the next 6 to 12 months. In turn this will cause U.S. growth to slow to between 0% and 1%. This is an extremely pessimistic assessment and our view at BAM is these types of predictions should be viewed skeptically. Analysts rarely seem to get it right which is why we stick to a buy-and-hold strategy that has worked well for us over time.
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