Resilient Investing Amid Geopolitical Uncertainty

Global Risk Report

Part 1: Global Analysis

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.

Hear from our contributors

EM Risk Analysis

Cathy Hepworth, Head of EM Debt at PGIM Fixed Income, explains how investors can assess geopolitical risk in EMs.

Rationality Trap

Mehill Marku, Lead Geopolitical Analyst at PGIM Fixed Income, discusses why investors must avoid complacency in an uncertain environment.

U.S. Debt

George Patterson, CIO of PGIM Quantitative Solutions, discusses the fiscal challenges facing the US.

U.S. Election Risk

James Sonne, Head of Government Affairs at PGIM, discusses the US election outlook and its impact on investors.

European Policy

Taggart Davis, VP of Government Affairs at PGIM, explains the economic challenges facing European policymakers amid a busy election year.

Risk Tolerance

Guillermo Felices, Global Investment Strategist at PGIM Fixed Income, explores how investors can hedge portfolios against risk.

Market Volatility

Robert Tipp, Chief Investment Strategist and Head of Global Bonds at PGIM Fixed Income, discusses the need for liquidity during times of market volatility.

Trade Flows

Magdalena Polan, Head of EM Macroeconomic Research at PGIM Fixed Income, explains why select countries will benefit from shifting trade flows.

Risk Tolerance

Manoj Rengarajan, Portfolio Manager at PGIM Quantitative Solutions, discusses the overlap between the macro environment and investors' risk tolerance.

Liquidity Risk

John Hall, Portfolio Manager at PGIM Quantitative Solutions, explains why institutions' time horizon and liquidity needs are crucial when managing volatility.

Asset Allocation

Mao Dong, Co-Head of Portfolio Management at PGIM Multi-Asset Solutions, discusses the key elements to a well-diversified investment strategy.

Up Next

EM Risk Analysis Cathy Hepworth, Head of EM Debt at PGIM Fixed Income, explains how investors can assess geopolitical risk in EMs.

Rationality Trap Mehill Marku, Lead Geopolitical Analyst at PGIM Fixed Income, discusses why investors must avoid complacency in an uncertain environment.

U.S. Debt George Patterson, CIO of PGIM Quantitative Solutions, discusses the fiscal challenges facing the US.

U.S. Election Risk James Sonne, Head of Government Affairs at PGIM, discusses the US election outlook and its impact on investors.

European Policy Taggart Davis, VP of Government Affairs at PGIM, explains the economic challenges facing European policymakers amid a busy election year.

Risk Tolerance Guillermo Felices, Global Investment Strategist at PGIM Fixed Income, explores how investors can hedge portfolios against risk.

Market Volatility Robert Tipp, Chief Investment Strategist and Head of Global Bonds at PGIM Fixed Income, discusses the need for liquidity during times of market volatility.

Trade Flows Magdalena Polan, Head of EM Macroeconomic Research at PGIM Fixed Income, explains why select countries will benefit from shifting trade flows.

Risk Tolerance Manoj Rengarajan, Portfolio Manager at PGIM Quantitative Solutions, discusses the overlap between the macro environment and investors' risk tolerance.

Liquidity Risk John Hall, Portfolio Manager at PGIM Quantitative Solutions, explains why institutions' time horizon and liquidity needs are crucial when managing volatility.

Asset Allocation Mao Dong, Co-Head of Portfolio Management at PGIM Multi-Asset Solutions, discusses the key elements to a well-diversified investment strategy.

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“As I travel the world talking to our large institutional investors, their number one risk is geopolitical and what it means for their portfolio construction.”

David Hunt, Chairman, PGIM on Bloomberg

<p>“As I travel the world talking to our large institutional investors, their number one risk is geopolitical and what it means for their portfolio construction.”</p>
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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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