Decarbonisation Requires Balancing Energy Realities With Ambitions
The multi-decade energy transition demands pragmatic pathways and investment opportunities abound for alpha generating potential.
Insights into emerging opportunities in a rapidly changing world
Markets advanced in 2024 as the Federal Reserve joined global peers in shifting monetary policy toward easing. With election-related uncertainty now behind us, investors can more decisively focus on the opportunities ahead. Paradigm shifts with implications for all facets of the global economy continue to reshape the macro landscape, recasting risks and potential rewards alike.
The global economy remains resilient but is moderating with below-average GDP growth expectations in the U.S., euro area, and China.
Major central banks eased short-term rates during the year and further rate cuts may materialise in 2025.
Rising inflation or geopolitical risks could catch investors leaning the wrong way by surprise, making active management critical.
Against this evolving backdrop, PGIM asset managers highlight key trends and related opportunities that they believe warrant the most investor attention as 2025 gets underway.
The multi-decade energy transition demands pragmatic pathways and investment opportunities abound for alpha generating potential.
The real estate market is gaining tailwinds for a sustained rebound as improving macro conditions and fundamentals create a good entry point for investors.
Macro stability and monetary easing should accelerate the M&A cycle in 2025, benefiting middle market companies with attractive risk-adjusted return profiles.
As markets heal from sharp dislocations and bottoming values, lower rate potential boosts the dealmaking environment, fueling a brighter real estate outlook.
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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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