Covid-19 is not just about immediate economic shocks. The virus is permanently changing how businesses, consumers, and governments operate — which impacts investors’ portfolios, according to PGIM.
“The economy will experience a 4.5 percent reduction in 2020, with significant bankruptcies and real near-term economic pain. Fiscal and monetary policy will be much of the story for the next year and a half. But we’re thinking about what matters structurally for investors over the long term,” Taimur Hyat, chief operating officer of PGIM, told Institutional Investor in an interview Monday.
PGIM is the investment management arm of Prudential Financial.
In a report set for release Tuesday, PGIM argued that four structural changes will reshape global business: reimagined global supply chains, larger and more expensive inventories, upheaval in residential and office real estate, and so-called “weightless” firms…….
Read the rest in Institutional Investor here