PGIM Investments: Reopening and Reflation Themes Drive Markets

QMA remains positive on risky asset classes and continues to overweight stocks and commodities relative to cash. We are also overweight real estate relative to fixed income. Our pro-risk view is driven by the continued strong economic and earnings recovery after the pandemic, the accommodative stance of global central banks, and widespread fiscal support, which has left consumers with excess savings at a time of significant pent-up demand from a year of COVID-19 restrictions. We expect upside growth and inflation surprises could continue through the summer months as we reach peak reopening.

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