PIMCO's Fels: Italian populism may be taste of things to come on a global scale

Five 'radical' changes

PIMCO's Joachim Fels, managing director and global economic adviser, has warned the global economy and financial markets are at an important turning point, as a result of five key factors.

Speaking at the firm's Secular Outlook, Fels said investors who assume the future will resemble the past ten years since the Global Financial Crisis will be in for a "rude awakening". The global economic adviser said a US recession in the next three to five years was becoming increasingly likely, which could have a significant impact on other markets. In particular, he pointed to the structural weaknesses in the eurozone that could come to the fore in the next market downturn. "There are plenty of structural weaknesses in this construct," he continued. "There are three pillars to e...