The unprecedented volatility in the global financial markets has been sobering, to say the least, for investors. Without question, a walk down Wall Street today looks different than it would have just a few months ago—and no one can say what it will look like tomorrow. The repercussions are being felt not only here at home, but by investors around the world. In short, change is underway on a global scale that will permanently alter the investment landscape.

The Value of Collective Wisdom

In this environment, we at Allianz Global Investors believe that one of the most valuable roles we can play is to provide thoughtful perspective on what is happening in the markets—perspective drawn from the collective wisdom of our family of investment managers: PIMCO, NFJ Investment Group, Oppenheimer Capital, RCM, Nicholas-Applegate and Cadence Capital Management. Each of our managers takes pride in their independent thinking, and, as a result, you will find their opinions may differ. However, we have found that this diversity of thought can, and often does, lead to greater insight.

What our investment managers do have in common is experience: Each has weathered market ups and downs over many years. What they have learned is that markets will fluctuate, sometimes wildly as they are today. But when seen in historical context, this volatility becomes more manageable. This long-term perspective can likewise help you stay on course through the current turmoil.

Diversifying for a New Reality

Coupled with this long-term perspective, we believe the key to managing through volatility is diversification. Although diversification does not assure a profit or protect against loss, it is one of the most powerful risk-management tools at your disposal. However, today's diversification model may look different than yesterday's. “There is now strong evidence that we are in the midst of a secular realignment of the global economy,” writes Mohamed El-Erian, PIMCO's co-CIO and co-CEO. In light of this, he posits a new asset allocation mix that goes beyond stocks, bonds and cash to encompass a broader range of asset classes, including commodities, real estate and inflation-protected bonds.

There is no denying it: Change is challenging. But with change comes opportunity. We at Allianz Global Investors are dedicated to making the most of these opportunities for our clients. As NFJ co-founder Ben Fischer says, “We still have a lot of volatility to live through. But over the long term, time and time again, I've seen an environment like this turn out to be a better buy than a sell.”

Keeping You Informed

For more in-depth insight from our managers, and for updates and analysis on the evolving global economic situation, we invite you to revisit this site regularly. By offering you the best thinking of our seasoned managers we can help provide you with a sound basis for making wise investment decisions. And, of course, we believe the wisest investment decisions are always made with the help of a trusted financial advisor.

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