Navigating the Global Slow-Growth Environment
The world economy is in a rough patch. Growth is slow in both developed and emerging markets, which previously were the growth engines over the past few years. Currency volatility in China and Southeast Asia, the delayed interest rate rise in the U.S., stubbornly low inflation in Japan, and the reemergence of the Eurozone crisis are all indicators of market weakness. There are numerous challenges for investors trying to meet expectations for high returns. Equity markets are experiencing volatility, bond yields remain low and alternative asset markets are saturated. Should institutional investors look for yield in frontier markets? How should they communicate to their stakeholders that expected returns from the “good years” will not be returning anytime soon? How should investors navigate this extremely challenging period for the global economy?