Q3 2018 MARKET OUTLOOKS

Will the synchronized global growth story continue into the second half of the year into next year? PGIM’s leading macroeconomists and investment experts provide a diverse set of outlooks as global financial markets weather this cycle of uncertainty.

PGIM Fixed Income

3rd Quarter Outlook

In addition to PGIM Fixed Income's Sector Outlooks, this edition of the Market Outlook features perspectives by Robert Tipp, CFA, Chief Investment Strategist and Head of Global Bonds and Nathan Sheets, PhD, Chief Economist and Head of Global Macroeconomic Research.

  • In Q2 Showers to Bring More Rain or Flowers?  Tipp looks at short-term factors that may be supporting the U.S. dollar, the recent divergence in developed market rates, and how conditions might unfold in the spread sectors over the second half of 2018.
  • In It's Only a Flesh Wound-The Global Expansion Continues  Sheets and the PGIM Fixed Income Macroeconomics Team cover some of the concerns that may have dented investors' enthusiasm in recent months. Despite concerns about global trade skirmishes, declining central bank liquidity, and pockets of EM volatility, they find that support for the ongoing economic expansion largely remains intact.
  • One of the uncertainties facing the emerging markets sector has come from the political front, and in What Elections in Select EM Countries Are Telling Us, our macroeconomics and EM portfolio management teams analyze the recent political results in Turkey and Mexico, while setting the stage for the upcoming Brazilian elections in October 2018.
Indicators of global growth have recently softened a touch, but they generally remain in solid, expansionary territory.
Our base case remains that the global economic expansion still has room to run.

QMA

Q3 2018 Outlook & Review

With the global synchronized growth story from earlier this year now giving way to increased growth divergence, QMA is still bullish, but just bearly.

PGIM Real Estate

Global Outlook: Focusing on Growth

PGIM Real Estate’s latest Investment Research paper, identifies themes and assesses opportunities in a world in which yield compression is slowing and returns are lower than investors have become accustomed to in recent years.

Market indicators look strong for now, but with the United States economy in its ninth straight year of expansion, investors are aware that the current cycle will not go on forever.
Strong corporate earnings outlook with expectations for 2018 earnings continuing to ratchet higher to 20%.

PGIM Global Partners

Global Investment Outlook & Strategy

The Global Investment Outlook & Strategy is a monthly research publication. The document provides a comprehensive review and outlook for global financial markets and economic trends. The document also presents investment strategies and recommendations for asset allocation (between stocks, bonds, and cash), global equity markets within major developed and emerging stock markets and sectors and global bond strategy within major bond markets.