From Our Global Desk

Rethinking Resiliency and Risk

A 2023 that kicked off with rampant recession talk and a near-calamitous bank crisis ended in remarkable relative stability, at least in the financial arena. Stronger than-expected economic growth in the face of higher interest rates, coupled with technological innovation around AI, helped risk assets turn the corner.

The Transformation of Labor Markets

Among its many tragic human and economic consequences, the COVID-19 pandemic left labor markets in turmoil. In a matter of weeks, hundreds of millions of workers around the world saw their income reduced or disappear entirely. For example, more than 40 million Indian migrant workers returned home, 32 million workers across Europe were furloughed and 22 million Americans lost their job.

Rethinking Risk In An Upside-Down World

The US is putting the weight of the federal government behind a reindustrialization drive at the same time China’s economy is sputtering and Japan is rekindling growth, all while the world taps the brakes on a decades-long era of globalization. The trade relationship between the US and China is also changing along with the global economy, as competition between the world’s two largest economies intensifies.

Generative AI

The rapid explosion of generative AI for general use has captured the global imagination with what the technology might enable. It’s expected to have a profound impact on economic growth by exponentially increasing productivity. That’s because everything today – from culture to consumer products – is a product of intelligence.

Credit Squeeze

As credit conditions tighten, opportunities are emerging for smart investors. With banks cutting back on lending, pricing dislocations are appearing in financial markets.

Investing in the Decarbonization Economy

Technological advancements, shifting consumer preferences, and regulations are leading countries and companies across the world to reduce carbon emissions and embrace sustainable practices. Even with limited further action or change, current policies suggest that the decarbonization economy will be massive.

The Great Balancing Act

Investors rode a roller coaster during the first half of 2022, with extraordinary events presenting significant challenges. Surging inflation from the ongoing war in Ukraine and renewed COVID-19 lockdowns in China continue to cloud the outlook for global economies, financial markets, and central bank monetary policies.

A New Supercycle Bull Market For Commodities

Structural bull and bear cycles in commodity markets are often sustained for a decade or more. We believe a structural bear phase in commodities ended with the onset of the COVID-19 pandemic and its aftermath and a new structural bull phase has now begun.

Globalization Of Information Momentum

To reduce portfolio volatility and provide greater diversification relative to the Value factor, we refined the input set and introduced a new Growth factor called Information Momentum into our US strategies in 2021

Investing Through Shifting Macro Perspectives

Extraordinary events presented significant challenges for investors in 2022. Aggressive central bank tightening and soaring inflation drove pronounced sell-offs in both stock and bond markets, leaving investors searching for sources of effective diversification and risk hedging.

US Corporate Profit Outlook-Nothing Gold Can Stay

The sharp resurgence in U.S. corporate profitability faces mounting cyclical headwinds, such as a tight labor market and a strengthening dollar, as well as structural obstacles, including the threat of de-globalization.

Annual Investor Survey

Montana capital partners ("mcp") is pleased to present the results of its 10th Annual Investor Survey, which gathers the views of institutional investors, such as banks, asset managers, pension funds, insurance companies, and sovereign wealth funds.

Looking Beyond the Uncertainty

After not one, not two, but three consecutive tumultuous years for financial markets, investors might be ready for a break from volatility in 2023.

Investment Opportunities in the Broader Crypto Ecosystem

The most powerful applications of blockchain may be unrelated to cryptocurrencies. The enduring value for long-term investors will be found not in cryptocurrency holdings themselves, but in the use cases and applications.

Considering Bitcoin for an Institutional Portfolio

The time has come to seriously examine what role bitcoin might play in an institutional multi-asset portfolio. This report lays out the empirical evidence for why cryptocurrencies fail to meet most institutional investor objectives around portfolio diversification, risk-adjusted returns, inflation protection and ESG.

Not Quite a Currency

No cryptocurrency adequately fulfils the three essential functions of money. This report explains why cryptocurrencies are deeply inadequate as currencies.

Understanding the Cryptocurrency Ecosystem

The ingenuity displayed in bringing together distributed ledgers and cryptographic methods represents a real technological breakthrough. Explained here the cryptocurrency landscape, cutting through the breathless media hype.

Cryptocurrency Investing

A growing number of investors are jumping into the much-hyped world of cryptocurrencies, driving the market's valuation to over a trillion dollars. But are they truly ready for prime time? The latest instalment of PGIM's Megatrends research series, Cryptocurrency Investing, explores why direct investments in bitcoin.

Global Real Estate Securities Market Review | First Quarter 2022

The first quarter of 2022 was marked by uncertainty as geopolitical-factor risk spiked along with inflation. The good news is that in terms of relative performance, REITs performed well against other asset alternatives like stocks and bonds in a very sharply rising interest rate environment.

The 60/40 Portfolio’s Overdue Overhaul

Much has been written about how historically low bond yields have sounded the death knell for the 60% equity/40% fixed income portfolio. While we acknowledge that the 60/40 construct is overdue for an overhaul, it is not due to low bond yields.

An Uncharted Path to Normal

Read about the key trends that might shape investors’ portfolios in 2022. Explore ideas on how investors can capitalize on the opportunities that lie ahead.

2022 Best Ideas| Revival Instincts

Despite lingering risks, we remain confident that the ongoing economic revival has staying power. Read our "Best Ideas" report offering long-term investors opportunities to thrive.

2022 Global Outlook | Investment Research From PGIM Real Estate

PGIM Real Estate - 2022 Global Outlook Report, highlights nine prominent trends that are expected to shape the investment outlook in the new year and beyond.

Reshaping Services | Portfolio Implications

As technology becomes our era’s biggest disruptor, the ripples will be felt across investment markets as well. Read all about the implications this could have on your portfolio in our latest Megatrends report.

Reshaping Services | Transportation and Logistics

Technology is reshaping the transportation and logistics sectors in a big way, and your investments will soon feel the impact too. Read all about it in our latest Megatrends report

Reshaping Services | Healthcare

Learn all about how technology is bringing about a major shift in how healthcare is delivered and administered globally in our latest Megatrends report

The Technology Metamorphosis: How We Grow from Here

The Technology Metamorphosis: How We Grow from Here, provides an in-depth understanding of the opportunities technological advancements present investors seeking to gain long-term growth and returns from this unfolding secular change

Reshaping Services | Financial Services

Discover how technology is disrupting the financial services sector in our latest Megatrends report.

Reshaping Services | A Century of Services

Know about the renaissance underway in the service sector in our latest Megatrends report and discover how technology is disrupting the implications of your investments.

Investment Research From PGIM Real Estate

Global Real Estate Outlook 2021 Report: PGIM Real Estate identifies several investment opportunities that look attractive for the next year on a risk-adjusted basis

Reshaping Services

Understand investment implications of technological disruption in latest Megatrends paper "Reshaping Services" and the impact of this massive transformation on the three sectors - financial services, healthcare, and transportation and logistics.

The Investment Implications of COVID- Induced Debt Overhang

In this report by PGIM Fixed Income, read about analytical framework aimed at spotting the discrepancies among emerging and frontier markets in their ability to weather the risks of COVID-induced debt overhang.

Navigating Transitioning Markets

The global economy has climbed out of a deep pandemic-induced recession and has been transitioning through the early phases of the economic cycle.

Pendulum Shifts Back Towards Growth

PGIM Jennison’s 3Q 2021 Outlook explains why US markets moving past peak reopening phases of the recovery signals improving rates of relative growth for secular stocks.

Post-FOMC market moves - even bigger in the "real" world

This article talks about projections and discussions laid forth by the Fed in a recent meeting and its implications in the “real” world.

The Global Economy is cleared for take-off

This article by PGIM Fixed Income and QMA gives valuable insights on the acceleration of global growth, the outlook for inflation and the prospects for global equities.

Five reasons why EM local markets may not tantrum to this tapering

This Bond Blog article by PGIM Fixed Income focuses on the Five Reasons why emerging market local rates may be more resilient to the onset of its latest reduction in asset purchases.

Electric Vehicles: The Boom is Just Beginning

The report by PGIM Jennison provides in-depth insights about electric vehicles and how this niche market is transforming into a multi-trillion-dollar industry.

Compelling Growth Ahead

In this report, Jennison Associates’ managers discuss the ongoing face-off between value and growth, disruptive innovation coming out of emerging markets and around the world, and a lot more.

The Jump in U.S. Inflation is Here. This is Where it May Head Next

The latest Bond Blog by PGIM Fixed Income talks about the arrival of the highly-anticipated jump in U.S. inflation and how market-based indicators continue to show a surprisingly prolonged increase in inflation expectations.

Evolving Global Fiscal Effects, GDP Trajectories

This ‘Weekly View From The Desk’ from PGIM Fixed Income focuses on the evolving global fiscal effects and GDP trajectories.

Global Tapering Thoughts

This ‘Weekly View From The Desk’ by PGIM Fixed Income focuses on global tapering thoughts and India’s steady momentum despite the re-emergence of COVID-19.

Quarterly Outlook

This Q2 outlook from PGIM Fixed Income serves as a reminder of how quickly events unfolded in slightly more than a year.

The Base, Bull and Bear Paths for the EA, China and the Globe

This ‘Weekly View From The Desk’ from PGIM Fixed Income sheds light on the base, bull and bear paths for global growth, for the European Area (EA), China and the globe.

1Q2021 Market Review and 2Q2021 Outlook

Know what lies ahead in the second quarter of 2021, PGIM Jennison Associates gives you a detailed market review of Q1 2021 and an outlook of Q2 2021.

Investing in the Next Innovation Supercycles

Get a detailed overview of the post-COVID-19 economy and its long-term implications for investors in this report by PGIM Jennison.

Risk Rally Resumes as Rates Stabilize

This ‘Weekly View From The Desk’ focuses on giving you an in-depth view of how the risk rally resumes as rates stabilize.

Q2 2021 Outlook

This Q2 2021 Outlook report provides a detailed analysis of the economic and investment scenarios from PGIM-QMA’s Global Multi-Asset Solutions Team.

Eyeing a Shifting Yield Curve and Fed Expectations

This ‘Weekly View From The Desk’ from PGIM Fixed Income focuses on a shifting yield curve and US Fed expectations.

Breadth of Recovery Takes Shape with Q2 Now in focus

The ‘Weekly View From The Desk’ by PGIM Fixed Income, focuses on the breadth of global economic recovery taking shape in Q2.

Inflation Forecasts in Focus with Central Banks Lined up

This ‘Weekly View From The Desk’ by PGIM Fixed Income, focuses on the GDP and inflation forecasts with Central banks lined up.

Portfolio Implications

Investors can no longer ignore climate change in their portfolio. This whitepaper shed light on the awareness and actions of investors in terms of weathering this change.

Investment Implications by asset class

Climate change is no longer a hypothetical risk and is impacting economies and markets today. This whitepaper puts into perspective how long-term investors need to view climate change as an opportunity for active alpha generation.

How are markets pricing in climate risk?

This chapter in our latest whitepaper discusses how climate risk will increasingly be reflected in market prices, leading to a potentially dramatic repricing across asset classes, sectors, companies and individual securities.

Climate is a major macro factor

Climate change is transforming the global economy. This chapter in PGIM’s Megatrends Series #WeatheringClimateChange latest whitepaper, talks about the reallocation of resources over the coming decades and its effects.

Climate Change is today’s reality

Understand the key macroeconomic implications of climate change, how markets are (and will be) pricing in climate risk across public and private asset classes and the resulting portfolio implications that CIOs should be mindful of.

Next Generation Of DC: Taking An Institutional Approach

This article reinforces the importance of retirement readiness and how defined contribution (DC) plans need to evolve to focus on the same by adopting a more institutional approach to investing.

Enhancing Returns: A Portable Alpha Overlay

This article highlights the difference between the changing times and how traditional approaches are unlikely to produce the long-term returns that asset owners need to achieve their goals.

Growth In A World In Flux

Consumers have altered their approach to daily life, lifting companies with attractive outlets for growth in a future post-pandemic world to the detriment of companies with bleak prospects for expansion.

‘Bridging The Gap,’ In Good Times And Bad

In times of economic uncertainty, when senior lenders may be looking to lower their levels of risk, mezzanine lenders who are ready to “bridge the gap” in a company’s capital structure may see a large opportunity.

Moving Out: The Growth of the Suburban Rental Market

The COVID-19 outbreak has given birth to an unlikely trend by replacing the dream of living in the big city and making the suburban rental market the place to be.

The Golden Age of Credit, Continued

Few people will have a difficult time watching the calendar flip past 2020. The reality, however, is that 2021 will no doubt bring its fair share of uncertainty as well, whether it be ongoing pandemic worries, geopolitics or an economic backdrop that remains unpredictable.

Evolving political backdrop carries through U.S. rates

The latest issue of ‘Weekly View From The Desk’ talks about the last week’s events at the U.S. Capitol and the effects of this evolving political backdrop on the U.S. rates

2021 Market & Macro Outlook

PGIM QMA’s latest report provides detailed insights on the economic and investment outlook for 2021 in terms of the pandemic, economic crisis and path to recovery.

The Retail Transformation: A World Tour

E-commerce has been displacing brick-and-mortar stores for years, but the trend accelerated dramatically in 2020 as lockdowns and shuttered retail locations forced consumers to the internet in droves.

Extracting Growth Alpha in Emerging Markets

PGIM Jennison’s recent report gives a detailed perspective of how investing in emerging market companies with strong secular growth can lead to significant alpha generation over time and the best way to capture it.

The window for Global FX to Emerge from Dollar Dominance

The bond blog shares mounting indications that global currencies may have an expanding window to gradually appreciate vs. the US dollar over the long term.

The shifting dynamics in Emerging Markets Local Currency Investing

Understand the ongoing Emerging Markets investment trend and how the dynamics have recently shifted in a more constructive direction for Emerging Markets Local Currency (EMLC) debt.

Insights on Events Moving the Financial Markets

Gain an expert perspective on the ongoing recovery in the global economy, the rally in the stock markets and the outlook for financial markets as they navigate several cross currents.

Have the Markets Become Unmoored from Fundamentals?

Understand how the strong recovery of financial markets in the U.S. in recent months has far outpaced the real economy’s more mixed rebound in this detailed blog.

A Visual Tour of China's Strong, Yet Unsettled, Recovery from the Great Lockdown

2020 has been a year of surprises and China’s quick recovery from the Great Lockdown has been the most astonishing one among them. To get a complete view of this scenario, read the detailed article .

Q4 2020 Outlook & Review

The pandemic and resulting lockdowns led to the most severe global economic contraction in decades in the first half of 2020,which was followed by a surge in economic growth in the third quarter as the lockdowns were eased and restrictions were loosened.

Five Big Themes that Will Frame the Post-Virus Economy

The great American philosopher Yogi Berra once said, “It’s tough to make predictions, especially about the future.” If anything, Berra’s quip understates the challenges of figuring out where the global economy is headed at this unprecedented time.

After the Great Lockdown

The COVID-19 pandemic will have profound and lasting impacts on virtually every segment of society. The extent of that tumult is difficult to predict, but institutional investors need to focus on the ongoing disruptions and how the coronavirus will structurally alter the behavior of companies, consumers and governments.

Globalization 2.0—A New Synthesis

As this century dawned, the forces driving globalization seemed inevitable, inexorable, and broadly desirable. An array of evolving technologies was making the world smaller and national borders more fuzzy. These included information and communication capacities, most notably the worldwide web.

We Stand by Our Employees, Our Clients and Our Communities

The last several weeks have indeed been difficult, as we all grapple with the rapidly evolving nature of what has become a full-blown humanitarian crisis. Our first priority - now and always - is the health and safety of our employees, our clients, and the communities in which we operate.

Citywire CEO Tapes: Industry's Response to COVID-19 Crisis

David Hunt, Chief Executive Officer and Chairman, PGIM, joins Citywire and chief executives of other U.S. asset managers to discuss the industry's response to the COVID-19 outbreak and ensuing selloff of global market.

When the Dust Flies: How Volatility Events Affect Asset Class Performance

Market volatility is inevitable over time, but what happens when the dust settles? Specifically, how do stocks and bonds perform during such events? Is asset class performance leading into an event different than after the event?

A Guide To Navigating Uncertain Markets

As the fallout from the novel coronavirus (COVID-19) continues, investors’ increasing concerns are driving heightened market volatility. Investors worldwide are focused on the continuing impact of COVID-19 and where markets will go from here

Implications of Coronavirus for Global Real Estate Markets

Concerns around the coronavirus continue to increase dramatically across the world, with most major countries now recording a sharp rise in the number of infections.

Ramifications from the Collapse in Crude

We viewed Saudi Arabia’s decision to cut prices and increase production as not only targeted at Russia, but also aimed at U.S. shale producers who have increased their market share by about 5M barrels/day over the last five years.

Prospects for Global Potential Growth: The Next Decade

The pace of global growth has slowed significantly during the past two years. After peaking at over 4% in 2017, it has softened to just above 3% at present, well below its two-decade average of nearly 3.7%.

The Future Means Business

Disruptive forces have led to the emergence of three new business models that are radically changing the investment calculus for institutional investors.

India-Ready to Step into China's Shoes?

India may be well placed to replicate China’s rise over the last three decades but the chance of success rests on India being able to drastically increase domestic savings and economy-wide productivity.

Uncovering Alpha Opportunities Emerging Market Corporates

In a late-cycle environment where investors’ ongoing search for yield has compressed credit spreads across a range of sectors, the nuances in emerging market corporate bonds have continued to present compelling opportunities.

2019 Q2 Capital Market Assumptions

We expect real economic growth in the developed economies to continue to moderate over the next decade, as it has for the last 30 years. Growth of the developed labor force is limited by domestic demographics, with no assumption for a significant offset from improved productivity growth.

The Technology Frontier

We are living in an era of unprecedented technological change. Contrary to popular sentiment, the disruption unleashed by these advancements has spread well beyond Silicon Valley start-ups and FAANG stocks – and will dramatically reshape almost every industry in the global economy.

Portfolio Implications

Investors can no longer ignore climate change in their portfolio. This whitepaper shed light on the awareness and actions of investors in terms of weathering this change.

Navigating an era of technology disruption

Technological change is going to shift the ground beneath our feet in ways that are quite profound for human lives and how we work.

The Economics of Global Aging: Gray Skies, Rays of Policy Hope

The global economy is in the midst of an accelerating demographic transition. Since roughly 2010, the share of the world’s population that is of working age (15-64 years) has peaked, and it is now trending down.

The Investment Implications of an Aging World

In a move that became front-page news around the world, China announced in late 2015 that it was abandoning its one-child policy. By lifting the restriction 35 years after its introduction, officials were tacitly acknowledging that the one-child law may have taken China down a demographic path that could now threaten its economic growth:

Emerging Markets at cross roads

Emerging markets will be the primary driver of global growth over the next decade, but a radical shift in the forces shaping emerging markets will require investors to take a quite different investment approach from what may have worked in the past.

The investment implications of urban expansion

This is the prime time of urbanization. Right now, 60 to 70 million people each year are being added to the urban population.