Defined Outcome Solutions Boost Confidence in Equity Investing
PGIM Quantitative Solutions’ Devang Gambhirwala shares how buffer ETFs can help balance upside potential with downside protection in uncertain markets.
A ROADMAP FOR RESILIENCE
Insights on adapting and thriving in challenging times
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.
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.
REITs Poised to Benefit from Goldilocks Conditions
PGIM Real Estate’s Rick Romano discusses fundamental and structural tailwinds supporting mean reversion in REITs.
Volatility Boosts Direct Indexing's Appeal
PGIM Custom Harvest’s Robert Holderith explains how elevated volatility fosters above-average tax-loss harvesting opportunities to improve after-tax outcomes.
Conservatism Wins in Private Credit
PGIM Private Capital’s Matthew Harvey highlights how competition in larger markets is driving better opportunities and return potential in the middle market.
Private Real Estate Enhances Diversification
PGIM Real Estate’s Darin Bright explains how valuations, limited supply, and diversification support the ongoing private real estate recovery.
Retirement Investors Expect the Unexpected with Real Assets
PGIM DC Solutions’ Jeremy Stempien shares benefits of including real assets in portfolios during periods of elevated, unexpected inflation.
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