BRAVING THE ELEMENTS – SURFING THE LATE CYCLE
As the 10-year anniversary of the Global Financial Crisis came and went, 2018 saw the return of volatility in global asset markets. Trade tensions between the US and China, tightening monetary conditions (led by the US) and signals from both investment markets and the real economy of slowing global growth have resulted in increased uncertainty, equity market corrections and lower investor confidence. We expect 2019 to be a continuation of this move toward a more normal investment environment, with potential for higher interest rates, rising inflation and further volatility spikes. In this environment we see that our clients could benefit from keeping it simple and going back to the basic elements of investing: asset allocation, risk management, operational efficiency and sustainability.
Mercer's "2019 Themes and Opportunities" series highlights the potential of unrewarded risks present in the market and also looks at how global economies and market participants' behavior in the 10 years since the financial crisis have changed and are impacting markets and creating opportunities. We highlight the ever-growing trend toward sustainable investing, which is now becoming standard.
Our Global Investment Forums 2019 will develop these themes alongside general and investor-specific risks inherent in the current investment environment, but also the opportunities that exist to help position portfolios for the short term and into the future.
We look forward to seeing you in Boston.