The investment landscape remains uncertain. Interest rates have been stubbornly high, and central banks around the world appear to be moving cautiously before pivoting to a more accommodative policy stance. Economies around the globe are moving along divergent paths, underscored by resilient growth in the U.S. that has outpaced many of its peers. The geopolitical environment is likewise unpredictable. Military conflicts and key elections in major economies are blurring the outlook, while heightened economic and technological competition between global powers may create fertile ground for new risks to emerge.
The world is changing quickly, and investors are facing an environment that looks far different than it did during the bygone era of low rates and low inflation. Uncertain times call for investors to construct their portfolios with a long-term view and remain prepared to capture new opportunities as they reveal themselves across a range of asset classes. As market conditions unfold, agile investors can unlock opportunities by viewing alternatives through a wide lens.
When the outlook is murky, it is important for investors to seek returns through a diverse mix of public and private assets. Alts can present investors with an abundance of opportunities to build greater diversification, and potentially, resiliency into their portfolios, whether through liquid or private alternative strategies. By taking a holistic approach to investing in alts, investors will uncover a broad set of strategies to navigate a new investment regime.
As the amount of capital being invested in alternatives increases, it is crucial that global investors not only take advantage of the differentiating power of alternatives, but also identify the opportunities across alts that are yet to be uncovered. To help investors harness these possibilities in 2024 and beyond, PGIM has collected investment ideas from our affiliates to highlight opportunities that are emerging across a broad spectrum of the alternative universe. Allocating toward alts could be a powerful tool for investors seeking to both capture opportunities and mitigate downside risk, no matter what the future holds.
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