Our Thinking

Expect profound changes in 2022 and beyond that will create both risks and opportunities for investors.

With record amounts of stimulus still gushing through global markets, and the economic cycle at a relatively early stage, we remain positive on risk assets.

We remain long risk assets, and are minded to increase this stance, as economic normalisation is on the horizon and policymakers remain supportive.

The second annual results of our Climate Impact Pledge showcase the corporate leaders and laggards on climate action; we are encouraged by improvements across sectors but will continue to press companies to meet this era-defining challenge.

In this outlook, teams from across LGIM examine the opportunities and risks with which investors are presented in this context.

In this outlook, teams from across LGIM offer answers to some of the biggest questions for investors raised by COVID-19.

A future in which there is less work to be done will radically reshape the economy, with important consequences for investors – including some contrarian implications for the consumer and real-estate sectors.

With global interest rates remaining near all-time lows, and $15 trillion of debt providing investors a negative yield, bond-market bears are in danger of becoming extinct. But could today’s ageing society finally provide the trigger for a sustained bond-market selloff?

We stay bullish on risk assets as we believe the medium term outlook for markets has actually improved

The global risk asset rally continued in early 2017, with emerging market investments the star performers.

The economic expansion of the last decade has been a consistent tailwind for financial assets. We see next year as the start of the twilight zone between expansion and an eventual downturn that will likely mark the end of the cycle.

In our last quarterly outlook, we flagged our cautious posture on risk assets, taken due to a number of smouldering risks on the horizon. One risk we did not highlight, however, was that a pandemic would break out, causing untold human suffering and economic damage.

Cleaning up the world’s plastic waste will be a monumental effort – one which will have major implications for petrochemical companies and the long-term demand for oil.

Today’s China no longer matches the view of the country that most people have. Could this gap between perception and reality offer a wealth of investment opportunities?

The ‘one share, one vote’ standard has been in place since 1940 but the number of companies with unequal voting rights is on the rise.

The disruptive change of the ‘shale revolution’ has forced existing producers to adapt while reducing OPEC’s pricing power. We expect further far-reaching changes to take effect in the coming years

Get ready for a shift in UK market leadership, says Stephen Message, manager of the L&G UK Equity Income Fund.

Predictions about the demise of the TV industry have persisted for over a decade, even as UK TV advertising and subscription revenues have continued to grow. However, we believe the industry has reached a tipping point, driven by rapid developments in technology and changing demographics.

Increasing life expectancy is one of the most profound success stories of the post-war era. The pace and scale of this human success story has been remarkable, but it is creating its own challenges for corporates.

In this quarterly outlook we outline our asset allocation views and address three key questions on equities, US monetarypolicy and emerging markets.

Some countries are in pole position, while others are in danger of crashing out. The global labour force (the number of 15-70 year olds willing to work) is slowing down.

Population density and growing congestion could limit growth in vehicle penetration.

After more than a century of incremental change, technological trends and consumer demands around road vehicles are converging.

Monetary support is being tapered despite significant risks. Pressure is building steadily and we think that recent resilience is going to be tested.

A rising China creates the potential for tension between itself and the leading world superpower, the United States. Investors should pay attention to the shifting of global power structures.

Just as the popularity of two-wheeled pedal power has been surging across London, a different type of cycle, the economic kind, has vanished from sight.