This report was prepared for and commissioned by Pacific Investment Management Company LLC; and was prepared by Ibbotson Associates. It does not represent the past or future performance of any PIMCO product or strategy. The report is provided as a general economic analysis and is not intended to provide a description of any particular investment approach or any specific product managed by PIMCO.

This report contains the current opinions of the author and of Ibbotson Associates but not necessarily those of Pacific Investment Management Company LLC. Such opinions are subject to change without notice. This article has been distributed for educational purposes only and should not be considered as investment advice or a recommendation of any particular security, strategy or investment product. Information contained herein has been obtained from sources believed to be reliable, but not guaranteed. It has been reprinted with permission of Ibbotson Associates.