STEADY CURRENTS, HIDDEN WAVES​

PGIM asset managers reveal key factors shaping their 2026 outlooks, offering insights to help investors capitalise on market stability and uncover growth beneath the surface.

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SLOW AND STEADY

Churning at times, markets rose with the tide in 2025. Keeping steady on the journey ahead requires navigating a delicate balance between risk and reward, with stabilising yields and inflation offset by high equity valuations, tight credit spreads, and fluctuating growth expectations. In this climate, investors can benefit from reliable currents offering continued support while looking beneath the surface for growth. 

A MUDDLE THROUGH ECONOMY

 

Despite uneven economic conditions, developed markets point to a “muddle through” future, marked by low-to-moderate growth and mildly sticky inflation.

STEADY TO LOWER RATES AHEAD

 

Major central banks eased short-term rates during the year, with the Fed poised to further rate cuts in 2026.

STRONG CASE FOR ACTIVE MANAGEMENT

 

Continued macro uncertainty with no strong catalysts for a rising tide to lift all boats, makes active management crucial to uncovering pockets of resilient opportunities.

INNOVATION STEERS GROWTH IN UNCHARTED WATERS

While 2025 proved to be a robust year for global equities, markets are likely to remain fluid in 2026, shaped by evolving macroeconomic factors and rapid technological innovation. Against this evolving landscape, investors may benefit from focusing on enduring secular demand drivers and high-quality companies. Discover where we find the most attractive opportunities.

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EXPLORE ACTIONABLE IDEAS

Learn where PGIM managers are looking for opportunities in 2026.

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References to specific securities and their issuers are for illustrative purposes only and are not intended and should not be interpreted as recommendations to purchase or sell such securities. The securities referenced may or may not be held in the portfolio at the time of publication and, if such securities are held, no representation is being made that such securities will continue to be held.

 

The views expressed herein are those of PGIM investment professionals at the time the comments were made, may not be reflective of their current opinions, and are subject to change without notice. Neither the information contained herein nor any opinion expressed shall be construed to constitute investment advice or an offer to sell or a solicitation to buy any securities mentioned herein. Neither PFI, its affiliates, nor their licensed sales professionals render tax or legal advice. Clients should consult with their attorney, accountant, and/or tax professional for advice concerning their particular situation. Certain information in this commentary has been obtained from sources believed to be reliable as of the date presented; however, we cannot guarantee the accuracy of such information, assure its completeness, or warrant such information will not be changed. The information contained herein is current as of the date of issuance (or such earlier date as referenced herein) and is subject to change without notice. The manager has no obligation to update any or all such information; nor do we make any express or implied warranties or representations as to the completeness or accuracy.

 

Any projections or forecasts presented herein are subject to change without notice. Actual data will vary and may not be reflected here. Projections and forecasts are subject to high levels of uncertainty. Accordingly, any projections or forecasts should be viewed as merely representative of a broad range of possible outcomes. Projections or forecasts are estimated based on assumptions, subject to significant revision, and may change materially as economic and market conditions change.


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