The money mood music is changing
Pimco President Christian Stracke says international clients are looking to diversify away from U.S. markets as geopolitical shifts make the global setup feel a little less “U.S. exceptionalism forever” and a little more “maybe let’s hedge this thing.”
Why investors should care
That matters because capital doesn’t just sit still — it wanders. If overseas investors start trimming their U.S. exposure, it can ripple through everything from Treasury demand to the dollar to how richly U.S. assets get priced.
The bigger vibe
Stracke made the comments at the Milken Institute Global Conference in Beverly Hills, while also noting Pimco’s international business is expanding. In other words: the world’s big money managers are increasingly selling the idea that one market should be the whole buffet.
- More geopolitical uncertainty = more demand for diversification
- More diversification = potentially less automatic love for U.S. assets
- Less love for U.S. assets = a reminder that “safe haven” status is not a forever subscription
Big picture: when clients start asking for fewer U.S.-only bets, that’s not just portfolio housekeeping — it’s a clue about how the world is pricing risk right now.