Page 19 - Taking Stock 22 Summer 2019

!BACK TO FEATURES 19 Themes and strategies for 2019 Summer 2019 Taking Stock GLOBAL MARKETS AT CROSSROADS In summary, we see a changing investment environment in 2019. Risk is being re ected more clearly in asset prices than was the case in 2017 and early 2018. With lower-quality debt now yielding more a more realistic interest rate and sell- offs in some of the more expensive equity markets (the US technology-heavy NASDAQ is the prime example), this is seen as broadly positive. At the same time, investor caution is at a high level, which tends to lead to consolidation in asset prices rather than a risk of additional major losses. Although uncertainties remain, selected markets warrant incremental additional investment exposures, and we will focus on equities and real assets such as property and infrastructure.