One of the world’s biggest bond investors said it would pivot away from US assets, in part over the Trump administration’s growing unpredictability.
The assault on the Federal Reserve, geopolitical tensions, fast-changing policy priorities, and rapid reversals on issues such as trade policy are driving investor unease.
PIMCO’s chief investment officer told the Financial Times that US President Donald Trump is “unpredictable” and that his bond fund needed to counter that with “a multiyear period of some diversification away from US assets.”
Citigroup analysts expect that shift to also impact US stocks and the dollar — known as the “Sell America” trade that drove markets in the wake of Trump’s “Liberation Day” tariffs in April.