June 2018 Panorama: Mid-year outlook 2018
Bringing you distinct viewpoints, drawn from the full breadth of our global capabilities.
This edition of Panorama looks at the changing investment landscape as we reach the second half of the year. 2018 has brought a fresh set of challenges for investors to navigate across both traditional and alternative asset classes. Our senior asset class and allocation experts assess the potential challenges and opportunities for investors over the coming months.
Suni Harford, Head of Investments
Although 2018 brought a fresh set of challenges for investors, Suni Harford, Head of Investments, sees this as an environment in which investors will have to think differently, work harder, and be more precise in their quest for attractive risk-adjusted returns.
Suni also believes it is an environment in which high-conviction active investing is likely to prosper.
Erin Browne, Head of Asset Allocation, Investment Solutions
Erin Browne, Head of Asset Allocation, Investment Solutions, thinks that the residual rate of growth in the global economy remains strong and above-trend overall. Erin does not see the strength of the US economy wavering significantly in the short-term.
Recent tax reforms and rising capital expenditure also gives Erin confidence in the sustainability of this cycle.
Erin highlights three principal threats to risk assets:
- Higher-than-expected US inflation
- Geopolitics and trade protectionism
- A hard landing in China