Entering 2018, we believe a key theme will be investors’ search for quality …in assets and in strategies. For the past decade, a combination of monetary stimulus and slower global growth has depleted the pool of, but not the demand for, high quality assets. Despite the low and even negative yields, investors have been reluctant to reset their target returns. Even though the need for yield remains strong, there is growing concern that the risks for stretching for yield are asymmetric—with the downside risks larger than the upside gains. As a result, we expect investors to shift their focus from the stretch for yield to the search for quality. To hear my thoughts on attractive quality assets and strategies that are expected to perform well – watch the video.
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