Episode Details

"Lock in the yield anywhere between, say, 6 to 7%, 7-plus percent, and then stay invested, over the next three to five years, you can also potentially capture capital appreciation when rates do come down" 

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Rob Pizzichetta of Mont Wealth hosts PIMCO product strategist Lily Feng (based in Singapore) to discuss the global macro outlook and fixed income positioning. Feng explains rising divergence across economies, with growth decelerating but no major recession risk, while inflation remains influenced by supply shocks such as Middle East-driven energy prices even as core inflation shows moderation. She describes a K-shaped economy where stronger balance sheets and AI-related capex support resilience while more rate-sensitive consumers and sectors weaken, especially outside the US. Feng expects the Fed may hike again depending on inflation pass-through, and outlines how central banks balance inflation versus growth risks. She attributes higher long-end yields mainly to inflation concerns and policy expectations, and says current high yields make active, high-quality fixed income attractive for locking in income and potential capital appreciation if rates fall toward neutral.

00:00 Welcome And Guest Intro

00:32 Lily Background And PIMCO

02:18 Global Macro Outlook

04:18 K Shaped Economy Explained

05:40 AI Capex And Growth

07:36 Inflation Breakdown Today

10:08 Fed Hikes And Outlook

11:51 Neutral Rate And Policy Limits

14:10 Restrictive Rates And Growth Risks

17:13 Why Long Bond Yields Jumped

20:20 Where Neutral Rates Sit

22:24 How PIMCO Positions Portfolios

26:01 Closing Thanks And Sign Off

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