Will Green Shoots Flourish in U.S. and Latin America?

A new Secular Outlook Series Q&A with Josh Thimons and Lupin Rahman is available on pimco.com.

Will Green Shoots Flourish in U.S. and Latin America?

· The U.S. economy is much further along the road to repair relative to its developed market peers, but it is still dealing with an unsustainable fiscal situation.

· Latin America is closely coupled to the rest of the world. What happens in the U.S., China and Europe over the secular horizon is especially critical.

· Our secular investment outlook calls for a more defensive posture toward risk. In U.S. fixed income, this suggests positioning for alpha rather than capital appreciation. And given increasing differentiation across Latin America, investors should stay consistently aware of credit risks.