Active is the most important word in our vocabulary. It doesn’t just describe how we manage your money at Allianz Global Investors. It defines our entire approach as a business, from the enthusiasm and entrepreneurial spirit of our employees, to our self-critical assessment of performance. Active is how we create and share value with clients.
Markets will likely pivot between embracing and avoiding risk in the coming year. Consider managing risk actively rather than accepting volatile index returns, and think beyond the benchmark by investing sustainably and adopting thematic approaches.
Conservative majority brings some certainty to the UK – for now
Victory for Prime Minister Boris Johnson’s Conservative party in the UK general election is likely to be welcomed by markets and potentially boosts prospects for the UK economy. It doesn’t, however, end the Brexit uncertainty overnight – and the UK continues to be vulnerable to a late-cycle global environment.
Climate change is shifting investor priorities and driving wider adoption of sustainable business models, which seek to “meet the needs of the present without compromising the ability of future generations to meet their own needs”.
Facing growing geopolitical risks, Fed will likely cut rates
While domestic growth appears robust, international risks are rising – including worsening US-China trade tensions and the growing risk of a hard Brexit. As such, we think the Fed won’t take any chances and expect the central bank to announce a 25bp rate cut at its next meeting.