Part 1: Resilient Investing Amid Geopolitical Uncertainty
Sep 16, 2024
Despite geopolitical turmoil, history has shown that periods of volatility are an opportunity to take a long-term view, lean into active investing, and deploy capital.
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.
PGIM’s survey captured a growing sentiment that geopolitics have emerged as the top risk facing global markets. As geopolitical risk changes the way institutional investors construct their portfolios, this research helps answer complex questions:
- What are the most significant risks facing institutions in the next two years?
- How can investors identify winners and losers in this uncertain environment?
- What actions can investors take to mitigate geopolitical risk and capture emerging opportunities?
Download PGIM’s Global Risk Report to learn more about investment strategies for an unpredictable world.
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