Be cautious, bulk up on cash as 2019 may be more volatile than 2018: Pimco

Staying in cash and waiting for the right opportunities to come by could prove rewarding in the new year that’s likely to be more volatile than 2018, according to Pacific Investment Management Co.

“We are cautious on our overall risk positioning,” said Roland Mieth, Singapore-based emerging-markets portfolio manager at Pimco, which oversees about $1.7 trillion. “Both in Asia and globally, we’re looking to maintain exposure to high-liquid portions of the market as well as increasing cash.”

Pimco joins investors including JPMorgan Asset Management in questioning global expansion forecasts for 2019 amid the ongoing U.S.-China trade spat and shrinking of balance sheets by