While PIMCO’s cyclical outlook is cautious overall, our outlook for emerging markets ex China (EM) is more constructive. We expect further improvement in the EM macro picture as most emerging economies are at a different stage of the economic cycle than developed economies and they are still benefiting from relatively easy global policy conditions. Both of these should support a rebound in economic activity and continued disinflation. Yet because valuations on EM debt are high after this year’s rally and market volatility is likely to increase in the months ahead, the days of relatively easy returns for investors in ... (full story)