Managing Through Election Cycle Volatility & Beyond
As the 2024 US Presidential election begins to heat up, investors will be looking to see if historical election-cycle market trends continue.
Investors face a challenging dilemma. While geopolitical strife calls for rethinking risk management, shocks may appear too frequent, and too great in number, to effectively mitigate their impact. Some investors feel the best course of action is to focus on trends that are more predictable or quantifiable—and deal with geopolitical surprises when they transpire.
With the right strategies, investors can construct portfolios with the goal of remaining resilient and capturing emerging opportunities in a new era of geopolitical uncertainty.
Source: PGIM Global Geopolitical Risk Survey
INVESTMENT TAKEAWAYS
Despite a fracturing world and a heightened sense of geopolitical risk, investors say they are ready to take on risk in their portfolios. While geopolitical turmoil portends greater volatility, history has shown that periods of volatility are moments to take a long-term view, lean into active investing, and deploy capital.
Download PGIM’s Global Risk Report to learn more about investment strategies for an unpredictable world.
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