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PIMCO outlined on Friday morning that they believe the financial community can expect increased volatility over the next five years compared to how it previously stood prior to the COVID-19 pandemic. At the same time, the financial firm also believes that there will be opportunities during these volatile times for patient investors.
“We do think that there’s going to be more economic volatility in the next five years. If you look back at the decade before the pandemic, especially in the US data, it wasn’t very exciting, but it wasn’t very volatile either. We think those days are gone at least for the next five years,” PIMCO’s managing director Richard Clarida stated.
PIMCO added: “We think there’s going to be great chances to achieve high returns for the patient investor in some of these sectors that grew a bit too quickly and are going to present attractive opportunities for new capital over the next few years.”
For investors interested in volatility, they may look to further analyze a handful of ETFs and ETNs that focus on the segment. Such funds include the following:
- iPath Series B S&P 500 VIX Short Term Futures ETN (VXX)
- ProShares VIX Short-Term Futures ETF (BATS:VIXY)
- iPath Series B S&P 500 VIX Mid-Term Futures ETN (VXZ)
- ProShares Ultra VIX Short-Term Futures ETF (BATS:UVXY)
- 2x Long VIX Futures ETF (BATS:UVIX)
Moreover, on Friday, Wall Street watched the Nasdaq Composite (COMP.IND) outpace the S&P 500 (SP500) and the Dow (DJI) after markets received the latest nonfarm payrolls report.
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