Part 2: Resilient Investing Amid Geopolitical Uncertainty
Nov 11, 2024
In an increasingly uncertain environment, PGIM surveyed investors across the US, Europe, Asia-Pacific and Middle East to uncover how geopolitical risks are changing the way institutions are constructing their portfolios and approaching risk management.
In an increasingly uncertain environment, PGIM surveyed investors across the US, Europe, Asia-Pacific and Middle East to uncover how geopolitical risks are changing the way institutions are constructing their portfolios and approaching risk management. The results shed light on the risks that investors fear most, as well as the actions they are taking to either mitigate the potential fallout or capitalise on opportunities that emerge.
Despite the unpredictability of the current environment, nimble investors can assemble portfolios with the ability to be more resilient against unexpected market shocks and an outlook that can be instantly transformed by geopolitical consequences.
Regional Analysis
US: Risks and Opportunities in an Election Cycle and Beyond
The US presidential election’s potential ripple effect across the domestic economy and global markets will help shape the investment outlook in 2025 and beyond. Different outcomes in federal and state races present divergent policy paths for key issues such as taxes, regulations and trade.
Europe: Tackling Economic Challenges as Tough Choices Loom
With new governments taking shape across Europe after a flurry of elections, investors are focused on how the region will solve its economic challenges to drive growth and increase competitiveness in a fragmented political landscape.
Asia Pacific: High Anxiety, but with Opportunities Emerging from a New Trade Landscape
While investors around the globe are confronted with a host of potential threats, geopolitical concerns are notably higher in the Asia-Pacific region than in other parts of the world. Meanwhile, a stronger US dollar is a risk that APAC investors list high on their list of concerns, given a higher dollar’s impact on emerging markets.
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