Prudential Financial Inc.’s investment management arm, PGIM, is bullish on global stocks and likes emerging-market debt, even as the escalating conflict between the U.S. and China over trade rocks markets.
There’s a “fairly low” probability that the trade tensions will derail global growth, David Hunt, chief executive officer of PGIM, said in an interview on Wednesday in Tokyo.
“There is an awful lot of discussion, and issues get on the table,” he said. “As it moves into implementation, in general, there has been a kind of middle ground that has been found.”
Hunt’s top asset managers, who were with him in Japan, agree. Here is what they had to say:
“Equity valuations on average are not excessive by historical standards,” said Jeffrey Becker, chief executive officer of Jennison Associates, one of PGIM’s investment firms, citing the S&P 500 Index. “It would be a mistake to sit on the sidelines of the equity markets over the next several years.”