Is it time to diversify your diversifiers?

PIMCO's article explores how even though pro-cyclical exposures have worked well across recent decades, 2022 has reminded investors to consider the potential portfolio impact of an abrupt shift in stock-bond correlations. Coupled with high levels of macroeconomic uncertainty around inflation and economic growth, PIMCO experts highlight that many investors are starting to incorporate defensive alternatives and diversify their diversification allocations.