Harry Wu, journalist for Southern Finance Omnimedia Corp (SFC)

After years of leading performance in the US market, some investors are flocking to other markets such as China.

Andrew Balls, PIMCO’s chief investment officer for global fixed income, said in an interview with SFC that in recent years, the US equity markets have outperformed and its share of the global market has continued to grow. But at the same time, the global trade war has also brought challenges, and investors have the potential for reallocation away from the US market.

Andrew Balls analyzed that global investors want to somewhat reduce their US exposure either by currencies or via reallocation of flows to other markets. In this context, other parts of the world have the potential to outperform the US equity markets.

Looking ahead, Andrew Balls said that high quality fixed income assets may outperform the equity market over the coming years. For investors underweight fixed income or holding excess cash, now is a good time to invest in high quality fixed income with yields of 5% to 7% in US dollars.

Based in the London office, Andrew Balls oversees PIMCO’s European, Asia-Pacific, emerging markets and global specialist investment teams. He manages a range of global portfolios and is a member of the Investment Committee. He has 25 years of investment and economics/financial markets experience and holds a bachelor's degree from Oxford and a master's degree from Harvard University.