What will drive economies and markets in 2022? Front and center are the tenor of monetary and fiscal policy and the path of inflation, alongside the impact of China’s recent policy pivot on global growth. Amid the flux, we’re seeking select opportunities in regions, sectors, and companies set to both drive and benefit from the changes underway.
The Covid-19 pandemic has shifted occupiers’ sentiment, recalibrating what is considered prime commercial real estate toward assets that are sustainable and “future-proofed.”
Joseph De Leo, Managing Partner and Investment Committee Member of PineBridge Benson Elliot, explores the impact on European real estate investing.
What’s ahead for investors in private equity markets? Steve Costabile, Global Head of PineBridge’s Private Funds Group, discusses how pandemic-era shifts and the “Covid new normal” are driving opportunities.
What we see ahead for Asian economies and markets in 2022 and beyond.
Asia’s credit fundamentals are largely steady and improving, with the default rate expected to fall to single digits in 2022. However, a slowdown in China and ongoing policy reforms may pose risks as well as opportunities, as potential policy easing and supportive measures may reverse the current defensive sentiment.
China’s recent regulatory changes will set the tone for 2022, as the focus on sustainability becomes increasingly central to the Chinese economy. We believe the long-term case for Chinese equities remains intact, though investors will need to navigate these changes over the short term.
Energy supply issues, unresolved trade frictions with the US, and a stressed housing sector suggest downside risk to China's 5.7% growth forecast for 2022. However, India is expected to outperform all other major economies in 2022.
Markets may remain choppy in the next several months, but we see select opportunities in Japanese equities, China A-shares, and Asia investment grade credit as economies reopen.
We discuss our outlook for the post-pandemic recovery, growth, and asset allocation, and why we expect ESG to dominate the agenda in 2022.