VantagePoint: Investing in a Low-Carbon Future

The transition to a low-carbon economy consistent with the 2015 Paris Agreement to limit global warming requires ambitious technological advancements and continued scaling of existing technologies. Such a massive economic transition by 2050, with meaningful progress by 2030, would be unprecedented but is not impossible, with adequate focus and funding. Indeed, significant progress has been […]

July 2023

US Real Estate Faces Challenges, But Opportunities Exist

Investors are understandably concerned about US commercial real estate (CRE), given the rapid changes in interest rates since the beginning of 2022 and the recent banking sector stress. Indeed, the Federal Reserve now expects a recession, which we anticipate will lead to declines in real estate prices in the near term. In the medium term, […]

May 2023

Asia Insights: Navigating Higher Rates and Volatility

Introduction Aaron Costello, Regional Head for Asia, and Vivian Gan, Associate Investment Director, Capital Markets Research The path of global central bank tightening remains a top-of-mind question for investors after the recent stress in the US and European banking sectors. While financial contagion seems contained for now and has yet to spread to Asia, the […]

April 2023

2023 Outlook: Real Assets

We expect energy equities will be resilient due to underinvestment in recent years. So, we don’t think investors should underweight this economic sector in the near term despite some long-term headwinds from decarbonization efforts. In real estate, we think offices may finally offer some attractive opportunities for the discerning investor. Energy Equities at Benchmark Weights […]

December 2022

VantagePoint: Three Big Questions

Policymakers are in a tough spot. One doesn’t need to look further than the United Kingdom to see their challenges. High inflation and slowing growth have pitted central banks against politicians seeking to stimulate. As a result, capital markets of all sorts—risky and defensive—have corrected sharply. Much bad news has been discounted, but is it […]

November 2022

Does the Inflation Reduction Act Increase the Attractiveness of Clean Energy Investments?

Yes. The Inflation Reduction Act (IRA) will generate significant benefits for companies involved in clean energy. The bill is anticipated to provide almost $370 billion over the next decade to a variety of industries, including utilities, transportation, and manufacturers of products such as batteries and solar components. The ten-year life of these tax credits provides […]

August 2022

Can Commodities Still Provide Shelter in the Storm as Both Stocks and Bonds Suffer Losses?

Yes, although such investments are not for the faint of heart. As we have seen in 2022, both stocks and bonds have lost value as inflation expectations have escalated. The current environment favors building robustness into portfolios, and exposure to commodities—in addition to high quality bonds—could be a part of this, particularly for investors whose […]

May 2022

Are High Oil Prices a Threat to Investors?

Yes, but the level of threat varies across asset classes. Higher oil prices are likely to slow economic growth and weigh on corporate profits across many regions, but more so in countries that are large energy importers, where the energy intensity of growth is highest and where governments have the fewest resources to cushion the […]

April 2022