2018 PineBridge Investment Outlook

Value in Volatile Markets

26 July 2018

Expectations for global growth continue to be disrupted by various forces, from geopolitics to central bank policy. Adding market volatility to this already crowded mix has made for an interesting first half of the year.

While these factors make markets more challenging, they can also open up attractive entry points – if you know how to find them. We continue to find opportunities to add alpha through our active, high-conviction investment approach, drawing perspectives from our on-the-ground teams around the globe.

Here, we assess the outlook for the remainder of the year from a fixed income, equities, multi-asset, and macroeconomic perspective and find value behind the noise.

Fixed Income: More Question Marks Mean More Volatility
Despite a strong fundamental outlook, we think a more cautious approach is warranted.

Equities: Focus on Fundamentals
Equity markets are reasonably priced. Earnings and pricing power are now what matter.

Multi-Asset: Trade Tensions Are Obscuring Positive Market Forces
While output gaps are narrowing, they remain plentiful, paving the way for an elongated cycle.

Economic: Still a Firm Foundation for Growth
Keep an eye on central banks as real policy rates turn positive in the US next year.

Video: Chief Economist Markus Schomer expects stronger growth rates for the remainder of 2018, despite some risks.