Market Commentary

No doubt the difficulty facing the Fed is how much of the broadening economic slowdown is due to concerns over a trade war, or a general deceleration of economic activity that is only partially related to trade, says Prudential’s chief market strategist.

President Trump and President Xi are talking again and, for the time being, the trade war is not on an escalating trajectory. The deeper question is, how much closer are we to a final resolution?

According to PGIM Fixed Income’s G-10 lead economist Ellen Gaske and chief investment strategist Robert Tipp, we may expect to see two rate cuts in the second half of 2019—more than what the median Fed projection has penciled in, but less than the three cuts the market has been pricing in.

Nathan Sheets, PGIM Fixed Income’s chief economist and head of global macroeconomic research, recognizes that uncertainties regarding U.S.-China trade tensions have multiplied and provides perspective based on the question of “what do we actually know?”

Despite the global growth slowdown, QMA projects that the general trend should be up near term, underpinned by central bank dovishness, and reasonably attractive valuations, as detailed in its latest Outlook & Review.

PGIM Fixed Income's Q2 outlook examines the conditions that may affect market performance after a strong Q1, the factors supporting global economic growth, and the forward trends of each fixed income sector.

Prudential’s chief market strategist says the recession “tug-of-war” in the market won’t abate until there’s clarity in the data.

In QMA’s 2019 Outlook & Review, QMA’s Ed Campbell and the global multi-asset solutions team take on the daunting task of peering 12 months into the future. Will 2019 bring a return to more placid and pleasant times, or are treacherous markets likely to remain as the calendar turns?

In its Trends for 2019 outlook, PGIM Real Estate’s investment research team says that despite concerns about elevated real estate pricing, a perceived lack of available stock, heightened political uncertainty and a shifting policy environment, there is still plenty of capital targeting real estate.

PGIM Fixed Income’s first quarter 2019 outlook follows a period of heightened market volatility and notable developments in politics, monetary policy and economics. Yet, as several of PGIM’s portfolio managers note, amid stable, more moderate global growth, recent volatility may have opened a window of near-term opportunities.