Pimco believes that the best days for bonds are over. The three-decade rally in bonds will eventually fizzle out. The rally will come to an end as nations sell record amounts of debt to fund their deficits, spurring a return of inflation and rising interest rates.
This pessimistic outlook for the bond market is driving Pimco out of its comfort zone from bonds into equities. El-Erian is currently planning for equity investments.
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