A Roadmap for Resilience

Insights on adapting and thriving in challenging times

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UNCERTAINTY DRIVERS

Market volatility surged to multi-year highs in early 2025, as investors reevaluated assumptions around AI-driven investments and U.S. policies disrupted global trade dynamics. The Federal Reserve adopted a cautious “wait-and-see” stance, balancing the risk of resurgent inflation from new tariffs against signs of slowing economic growth. As the year unfolds, investors should brace for sustained volatility.

GLOBAL ECONOMIC SLOWDOWN

 

The global economy has shown resilience but faces slower growth, with GDP expectations falling below average.

INTEREST RATE POLICY UNCERTAINTY

 

While most central banks have started to ease short-term rates, the Fed remains cautious at this juncture.

ELEVATED RISKS

 

Geopolitical tensions, recession risks, inflation concerns, and high equity valuations highlight the need for resilient portfolios to navigate persistent market uncertainty.

2H 2025 INVESTMENT THEMES

PGIM asset managers delve into key trends, offering valuable insights on navigating risks and unlocking potential in this challenging environment.

FIXED INCOME OFFERS STABILITY FOR UNCERTAIN CONDITIONS

With slower growth and mounting risks, the global economic landscape is growing more complex. In this challenging environment, fixed income stands out as an appealing option for investors, offering attractive long-term yields, strong return potential, and enhanced portfolio stability–but careful selection is key.

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SECULAR TRENDS DRIVE GROWTH IN SLOWING ECONOMY

After a challenging start to 2025, equity markets have rebounded. While uncertainties and geopolitical risks remain, we’re optimistic about companies rooted in durable trends. Businesses with strong pricing power, tariff resilience, and competitive advantages are well-positioned to thrive, even as economic growth slows.

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EXPLORE ACTIONABLE IDEAS

Learn where PGIM managers are finding resilient opportunities amidst ongoing global uncertainty.

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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.

 

The views expressed herein are those of PGIM investment professionals at the time the comments were made, may not be reflective of their current opinions, and are subject to change without notice. Neither the information contained herein nor any opinion expressed shall be construed to constitute investment advice or an offer to sell or a solicitation to buy any securities mentioned herein. Neither PFI, its affiliates, nor their licensed sales professionals render tax or legal advice. Clients should consult with their attorney, accountant, and/or tax professional for advice concerning their particular situation. Certain information in this commentary has been obtained from sources believed to be reliable as of the date presented; however, we cannot guarantee the accuracy of such information, assure its completeness, or warrant such information will not be changed. The information contained herein is current as of the date of issuance (or such earlier date as referenced herein) and is subject to change without notice. The manager has no obligation to update any or all such information; nor do we make any express or implied warranties or representations as to the completeness or accuracy.

 

Any projections or forecasts presented herein are subject to change without notice. Actual data will vary and may not be reflected here. Projections and forecasts are subject to high levels of uncertainty. Accordingly, any projections or forecasts should be viewed as merely representative of a broad range of possible outcomes. Projections or forecasts are estimated based on assumptions, subject to significant revision, and may change materially as economic and market conditions change.

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