OUTLOOKS

OUTLOOKS

Fourth Quarter 2019 Outlook

Fourth Quarter 2019 Outlook
PGIM Fixed Income   PDF Opens in a new window

Positive total returns continued to accrue across the fixed income sectors in the third quarter, leading to some eye-popping double-digit gains thus far in 2019 (see Figure 1 on the following page). Yet, if bonds have managed to thrive in the current environment of economic and policy uncertainty, one only needs to recall a year earlier—Q4 2018—for a reminder of how quickly market sentiment can change. With the possibility of change in mind, Robert Tipp, CFA, chief investment strategist, acknowledges that it is understandable to consider how things may go wrong for bonds from here. But in “Policy Uncertainty—Perfect for Bonds,” Tipp explains that the secular conditions that fueled the recent gains in fixed income haven’t changed and, in fact, could intensify going forward. Part of the economic uncertainty is grounded in the divergent health of certain sectors. As a case in point, Nathan Sheets, PhD, chief economist and head of macroeconomic research, looks at the divide between the global manufacturing and services sectors in “Assessing the Two-Track Global Economy—Manufacturing vs. Services.”

 

Q4 2019 Outlook & Review

Q4 2019 Outlook & Review
QMA   PDF Opens in a new window

Escalating geopolitical risks and increased monetary easing have elevated both the upside and downside risks for the global economy. As such, it’s currently very difficult to determine which force will gain the upper hand. Given this backdrop, QMA sees the potential for significant market swings between now and year-end. Looking at the global macroeconomic environment, it points out that weak global growth and elevated geopolitical risks have prompted global central banks to embark on a fresh round of easing to stimulate growth and counter the negative effects of the trade war. However, with interest rates already at, near, or below zero in many countries, the power of monetary policy may be muted. Thus, the focus has shifted to the use of fiscal policy as a means of stimulating growth, especially in Europe.

 

Market Review and 4th Quarter Outlook

Market Review and 4th Quarter Outlook
Jennison Associates   PDF Opens in a new window

This new outlook from Jennison Associates takes a closer look at past performance and what to expect in equity markets this quarter.

 

Global Real Estate Securities Market Review

Global Real Estate Securities Market Review
PGIM Real Estate    PDF Opens in a new window

Following is a new outlook from PGIM Real Estate that reviews recent performance and provides forward looking expectations of global real estate.

 

Global Real Estate Trends Set to Shape the Next 12 Months

Global Real Estate Trends Set to Shape the Next 12 Months
PGIM Real Estate   PDF Opens in a new window

In this outlook, PGIM Real Estate identifies nine major occupier and investment trends that it expects to influence market conditions and investment performance in 2019 and beyond.

Consider a fund's investment objectives, risks, charges and expenses carefully before investing. The prospectus opens in a new window and the summary prospectus contain this and other information about the fund. Contact your financial professional for a prospectus and the summary prospectus. Read them carefully before investing.

An investment in our money market funds is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. Although the funds seek to preserve the value of your clients investment at $1.00 per share, it is possible to lose money by investing in the funds.

Mutual fund investing involves risk. Some mutual funds have more risk than others. The investment return and principal value will fluctuate and investor's shares when sold may be worth more or less than the original cost. Fixed income investments are subject to interest rate risk, and their value will decline as interest rates rise. Asset allocation and diversification do not assure a profit or protect against loss in declining markets. There is no guarantee a Fund's objectives will be achieved. The risks associated with each fund are explained more fully in each fund's respective prospectus. Your clients should consult with their attorney, accountant, and/or tax professional for advice concerning their particular situation.

This material is being provided for informational or educational purposes only and does not take into account the investment objectives or financial situation of any client or prospective clients. The information is not intended as investment advice and is not a recommendation about managing or investing your retirement savings. Clients seeking information regarding their particular investment needs should contact a financial professional.

Investment products are distributed by Prudential Investment Management Services LLC, a Prudential Financial company, member SIPC. Separately Managed Accounts are offered through our affiliates. Jennison Associates and PGIM, Inc. (PGIM) are registered investment advisors and Prudential Financial companies. QMA is the primary business name of QMA LLC, a wholly owned subsidiary of PGIM. PGIM Fixed Income and PGIM Real Estate, are units of PGIM. © 2019 Prudential Financial, Inc. and its related entities. Jennison Associates, Jennison, PGIM Real Estate, PGIM and the PGIM logo are service marks of Prudential Financial, Inc. and its related entities, registered in many jurisdictions worldwide.

Prudential Financial, Inc. of the United States is not affiliated with Prudential plc. which is headquartered in the United Kingdom.

Investment Products: Are not insured by the FDIC or any other federal government agency, may lose value, and are not a deposit of or guaranteed by any bank or any bank affiliate.

 

For compliance use only 1016145-00002-00 Ed. 07/2019