PIMCO: Here are 3 difficult transitions the world will undergo in 2017

In "Cyclical Outlook: Into the Unknown," Joachim Fels and Andrew Balls identified "3 difficult transitions" the world will undergo - namely from monetary to fiscal policy, globalization to deglobalization, and China's currency regime transition - and offered their outlook.

"Who would have thought back in May that within the following six months the UK would vote for Brexit, Donald Trump would be elected president of the United States, Italy would vote 'No' on reform, and that markets would like it?," the duo noted as backdrop to their 2017 outlook. "Rather than betting big on one direction or the other, investors today should consider a patient approach and aim for capital preservation until the veil of uncertainty over future policies starts to lift," they said.

Below we present the slides from their presentation to fellow PIMCO employees.