PIMCO shouted: It's time to sell US stocks!

Recentlu the US stocks gave investors an impression: the panic index VIX fell back to the level before the big record high, and the stock market should move smoothly in the future.

However, Mark Kiesel, chief investment officer of Pacific Investment Management (PIMCO), said that it is time to take profits, because the US debt deficit is rising, global trade problems, and global economic growth are slowing down. There will be more volatility.

In his view, the market has now digested a lot of good news, and all major asset classes are in the overbought zone. Why do you say that? “This is the case when all ships are pushed up when the tide is high.”

He explained this: "The chasing high buying tide is about to pass. As the global economy slows down, you will see that profit expectations have to fall. The central bank will always withdraw from the market in the future, and the ability to stimulate fiscal stimulus will cease to exist."

“Now, it’s time to reduce of risk your portfolio, especially if you sell US stocks and buy high-quality bonds,” says Mark Kiesel.

Mark Kiesel said that PIMCO will shift its investment portfolio to high-quality government bonds, investment-grade corporate bonds, and hold corporate bonds with less-than-high yields and less leverage.