Investors should prepare for lower returns and higher volatility for up to 5 years, PIMCO says

Investors should prepare for lower returns and higher volatility for up to 5 years, PIMCO says

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A team of PIMCO economists wrote on Wednesday that investors should prepare for lower returns and higher volatility for the next three to five years. Even the "best efforts of central banks" will be unlikely to offset macroeconomic slowdowns, PIMCO said. "Over the next five years it is quite likely that bad news on the macroeconomic front will turn out to be bad news for risk assets," they wrote. Investors can prepare for this period of lower returns by emphasizing capital preservation, said PIMCO.Visit Business Insider's homepage for more stories.

The stock market experienced skyrocketing returns over the last few years. But a team of economists from PIMCO is now telling investors that the next three to five years are likely to be met with lower returns and