Principal Global Investors’ view points to strong GDP growth in the US in 2021, and an improvement in emerging markets versus worse performance in Europe and Japan – due to the greater impact of the pandemic in both regions. In this scenario central banks and governments will continue to support the economy with stimulus, albeit to a lesser extent, and interest rates will remain stable. Risk appetite will also continue, although inflationary fears will increase volatility. Investors will be able to implement a wide range of strategies in a cyclical scenario such as the current one, with US and emerging equity being the recommended choice versus European equity; high yield and emerging debt versus sovereign debt in developed countries; and return-enhancing alternative investments versus risk-reducing ones.
Principal Global Asset Allocation Viewpoints written summary 2Q 2021 (1)
Principal Global Investors recommends US equities, high yield and emerging market debt, and real assets for investors in the third quarter of 2021.z
Principal Global Investors (PGI), one of the top 50 global asset management companies with USD 540 Bn in AUM, has published the Global Asset...