Shifts in trade and national security priorities split globalization into two tracks, PGIM research finds
PGIM’s Megatrends research team finds that around 75% of the global economy remains on the “fast track” of globalization.
David Hunt, PGIM President and CEO, joined Bloomberg TV’s Wall Street Week for a one-on-one conversation about economic and geopolitical forces that are driving investment decisions. Hunt noted that geopolitical risks and their potential impact to portfolios are top of mind for institutional investors, particularly as the world navigates a busy year for elections in major economies. However, for long-term investors, market volatility can present new opportunities to deploy capital, he explained.
Hunt also discussed the importance of maintaining liquidity in an uncertain environment, the divergence in economic results around the globe, and how asset-backed finance will be a major contributor to the next phase of growth in private credit.
PGIM’s Megatrends research team finds that around 75% of the global economy remains on the “fast track” of globalization.
The evolution of globalization over the last three decades can be segmented into three phases: The Golden Era, Nationalist Backlash and the Dual-Track Era.
Four crossportfolio implications for CIOs to consider for the impact of the new dual-track era of globalization.