From Deal Journal:
Pimco is out with its latest economic outlook report, and Deal Journal was curious to read what the giant bond fund thinks about the crisis in Japan.Hoping for the best.
Here’s the word from Pimco’s Saumil Parikh. (Note: our colleagues at Barron’s have reported that Pimco has been buying up Japanese ETFs for its Pimco Global Multi-Asset Fund.)
Japan’s economic growth rate will likely fall in the immediate aftermath of the natural disasters, but reconstruction activities should have a stimulative impact on growth over time. The loss of inventories and supply-chain disruptions could cause inflation to rise temporarily from very low levels.Much will depend on the extent of the damage to Japan’s infrastructure. We are hoping for the best....
Roger that, over.