PIMCO: Volatility Has Become the New Normal in the Market, Two Core Factors Are Increasing Risks

Glonghui, February 12｜US asset management giant PIMCO pointed out that the financial markets in 2026 have repeatedly faced event-driven volatility since the beginning of the year. From the US and Japan to Europe, market prices have experienced significant fluctuations in sovereign bonds, exchange rates, and mortgage markets. This instability is not accidental, but stems from sudden geopolitical variables and the unpredictability of policy stances. Marc Seidner, Chief Investment Officer of Non-traditional Strategies at PIMCO, and Portfolio Manager Pramol Dhawan emphasized that volatility has become the new normal in the market. Global markets are rapidly shifting due to geopolitics and policy stances, and the uncertainty of government decisions is becoming a core factor driving up risk, with the traditional global system tending toward "fragmentation." PIMCO suggests that investors should abandon rigid asset allocation, establish flexible strategies with a global perspective, and, in an environment where US stock valuations are high and safety margins are limited, seize investment opportunities arising from market mispricing through relative value strategies and active management.