Pimco Is Selectively Adding Risk in Selloffs, Kiesel Says

The video discusses the current market outlook, emphasizing the importance of selectively adding risk due to expected economic recovery and stimulus. It highlights the unprecedented support from central banks and the impact of liquidity on markets. The discussion also covers the disparity between large and small cap companies, with large caps benefiting more from policies. Investment strategies focus on higher quality bonds and equities, with an expectation of modest returns in 2021 due to global economic growth, central bank support, and fiscal stimulus.

What is the current market sentiment due to the virus spike?

• Risk-on tone

• Bullish tone

• Neutral tone

• Risk-off tone

What unprecedented action have global central banks taken in 2020?

• Decreased market liquidity

• Increased interest rates

• Bought $8 trillion of assets

• Reduced fiscal stimulus

What is a significant challenge faced by smaller firms in 2020?

• Excessive liquidity

• Rising bankruptcy threat

• High profit growth

• Increased market share

What is the investment strategy suggested for high-risk bonds?

• Focus on stocks only

• Avoid triple C rated bonds

• Invest heavily in triple C rated bonds

• Invest in government bonds

What is expected to support equity markets in 2021?

• Reduction in market liquidity

• Rising inflation

• Global economic growth, central bank support, and fiscal stimulus

• Decreasing corporate profits

What is the expected corporate profit growth in 2021?

• Negative growth

• No growth

• Double digit

• Single digit

Which industries are expected to see significant profit growth?

• Energy and utilities

• Healthcare and pharmaceuticals

• Travel and tourism

• Technology and finance