Text on screen: PIMCO
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Text on screen: Tina Adatia, Fixed Income Strategist
Tina Adatia: Dr. Bernanke, we'll start with you, but we'll go through everyone. What keeps you up at night or in other words, what is the main risk you're worried about today?
Text on screen: Dr. Ben Bernanke, Chair of PIMCO Global Advisor Board, Former Federal Reserve Chairman
Dr. Ben Bernanke: Inflation is both too high and too low is a concern that we need to be paying close attention to. And I think we live in a multipolar world where the United States doesn't dominate the way it did in the media post-war era. And I don't think we should forget about the geopolitical issues that are out there. In Hong Kong and Taiwan, in Iran and elsewhere, markets tend to ignore those political issues until suddenly they become non ignorable. So I think we have to keep an eye on those things as well.
Tina Adatia: Thank you. Joachim, let's go to you.
Text on screen: Joachim Fels, Global Economic Advisor
Joachim Fels: Yeah. Somewhat related to what we just heard from Dr. Bernanke. So, I worry that one of the longer term consequences of this pandemic is going to be a further rise in populism and economic and other forms of nationalism. Several governments, particularly in Europe, have not handled this pandemic very well. Some countries are really lagging behind on vaccine distribution. The lockdowns are leading to more and more protests from people who refuse to wear masks and so on. So I think you may see a backlash over the next couple of years with more support for populist parties and populist candidates. Also we've seen an increase in wealth inequality. I mean, financial markets have rallied massively over the past year, but not everybody is participating in this increase in wealth and rising inequality is one of the underlying drivers for populism.
Tina Adatia: And Marc, to you.
Text on screen: Marc Seidner, CIO Non-Traditional Strategies
Marc Seidner: Complacency , Complacency keeps me up at night. Everyone who is on this call knows the recent headlines that are becoming a little bit too frequent in terms of accidents, investor accidents. And we cannot be too complacent in this environment. Fortunately, none of them have become systemic of nature, but I think we have to recognize that if there is a high level of complacency, that accidents will continue and the risk is ever present that something becomes systemic.
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