Investment implications
- Investors need to account for increased linkages across both countries and markets.
- Consider applying a global framework to all investment decisions given the more pronounced linkages across both countries and asset classes:
- Roughly 40% of S&P 500 company sales occurred outside the U.S. over the last decade.
- Spillover indices—which capture the portion of a country's equities, FX and bond market returns that can be explained by other countries' lagged market returns—have been on the rise since the mid-1990s.
Explore Other Megatrends 360° Themes
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Leveraging Technology to Keep Agriculture Yields ResilientDue to ongoing climate change, weather volatility and growing populations, investors will need to leverage new technologies to maintain yields.
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Measure, Assess and Manage Longevity RiskPensions need to assess longevity risks and adjust their portfolios for different scenarios.
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MT 360
References to specific securities and their issuers are for illustrative purposes only and are not intended and should not be interpreted as recommendations to purchase or sell such securities.
The securities referenced may or may not be held in the portfolio at the time of publication and, if such securities are held, no representation is being made that such securities will continue to be held.
