Pimco's Fels Says a Lot Can Go Wrong in Next 3-5 Years

The video discusses the elevated risk of recession over a long-term horizon, emphasizing that near-term recession risks are low due to economic stability and cautious Fed policy. It highlights potential long-term risks, including external shocks from China and political risks in the Eurozone. The video advises investors to prepare for a potential recession by gradually de-risking and moving into safer credit spectrum areas, emphasizing the value of active asset management.

What external factors could contribute to economic instability according to the text?

What role does active asset management play in preparing for economic downturns?