Increased trade tensions, market volatility and dovish federal policies have left investors with uncertainty about the months ahead. PGIM’s asset managers offer their outlooks.
QMA’s global multi-asset solutions team focuses on the two most important factors impacting global investors—slowing growth and dovish monetary policy. QMA says global growth conditions are among the weakest since the financial crisis, and growth risks are increasing because of further escalation of trade conflicts and other geopolitical tensions.
PGIM Fixed Income’s Robert Tipp, chief investment strategist and head of global bonds, finds that low inflation may be a more prevalent force than low growth. “To the extent that rates remain low and rangebound—thanks to the general backdrop of moderate growth in inflation—bonds seem likely to continue outperforming cash.”
Also in the outlook, Nathan Sheets, chief economist and head of global macroeconomic research, considers the factors keeping the global economy in its current malaise.
Jennison Associates says that while global equities extended their gains into the second quarter despite substantial volatility, after months of trade friction consumer and business sentiment is starting to fray. With substantial gains in equities markets already tallied this year, the heavy pull of macro and political concerns could cause investors to take pause. Still, there are solid positives. Labor market strength persists, inflation remains benign and the Federal Reserve has eased already low interest rates.