Five themes to look out for over the next five years

Institutional investors have a mandate to look at the long-term future, even as economies across the globe continue to climb out of the rubble from the 2008 global financial crisis. According to Prudential Fixed Income's Arvind Rajan, head of global and macro, there are five macroeconomic themes to look out for over the next five years:

• A multi-speed world: G10 and emerging markets splinter into medium and low-growth camps
• Cyclical and quantitative reflation battles secular disinflation: But ultimately loses the war
• Liquidity and credit: Scarcity amidst abundance
• Commodities: No more crashes? However, divergent supply and demand dynamics ahead
• Geopolitics: Lurching slowly toward a multi-polar world


Rajan looks at each of these themes through the lens of a long-term investor and describes in detail his views on the investment implications of each in the latest Prudential Fixed Income Global Insights report, "Five Over Five." For example, Rajan expects low and range-bound interest rates over the next five years because "cyclical forces pushing rates up will run into an invisible wall of secular disinflation created by technology, demographics, inequality, regulation and other factors."

Interested in learning the other investment implications of Rajan's five macro themes? Read "Five Over Five." Want to speak with Arvind? Contact Theresa Miller.

distributed by