The Outthinking Investor PGIM

In the middle of the Great Depression, President Franklin Roosevelt spearheaded the creation of Social Security, forever changing the US retirement system and how Americans think about long-term savings. Only a few pensions existed at the time, and Social Security was the first government-backed program to provide for the basic welfare of all seniors. The retirement landscape in the US—and around the world—has no doubt undergone massive change since the days of FDR. DC plans have significantly improved the retirement outlook, and an estimated 54.3% of American families now participate in some form of retirement plan such as a 401(k) or IRA, according to a 2022 survey by the Federal Reserve. Meanwhile, seniors still rely on Social Security payments, yet the Congressional Budget Office has forecast that Social Security’s Old-Age and Survivors’ Insurance Trust Fund will be depleted in 2033.
Building retirement security for generations to come will require not only a solution to the Social Security funding crisis, but continued support for the broader retirement savings system. How can policymakers address Social Security’s challenges without weakening private retirement savings?
In this episode, The Outthinking Investor speaks to three experts about retirement readiness, how governments and employers alike help workers save for retirement, and policy prescriptions for the challenges that lie ahead. Our guests are Dennis Simmons, Executive Director of the Committee on Investment of Employee Benefits Assets (CIEBA); Andrew Biggs, a senior fellow at the American Enterprise Institute and former Deputy Commissioner of the Social Security Administration; and Mike Miller, Head of PGIM DC Solutions.
To cultivate rich conversations around complex investment topics, The Outthinking Investor features speakers with diverse points of view. Participating on the podcast does not imply endorsement of other speaker's opinions, nor does PGIM necessarily endorse the opinions of its external guests.
To hear more from PGIM, tune into our new podcast, Speaking of Alternatives, hosted by Eric Adler, President and CEO of PGIM Private Alternatives. Speaking of Alternatives is available on Spotify, Apple, Amazon Music, and other podcast platforms. Explore our entire collection of podcasts at PGIM.com.
 

Harry Markowitz, the legendary economist and father of modern portfolio theory, has been credited with saying that diversification is the only free lunch in investing. However, his work on the efficient frontier shows that investors give up expected returns to lower expected risk. This may make diversification even more compelling. With uncertainty becoming a prevailing theme in financial markets and the global economy, focusing on the benefits on diversification could prove valuable for investors. The 60-40 portfolio may have lost its luster in the broad market selloff of 2022, but allocating across a diverse mix of assets is crucial in the long run.
This episode of The Outthinking Investor dives into the topic of asset allocation and the role of stocks, bonds and alternatives in a diversified portfolio. Our guests are Antti Ilmanen, Global Co-Head of the Portfolio Solutions Group at AQR Capital Management and author of “Investing Amid Low Expected Returns: Making the Most When Markets Offer the Least”; Scott Cederburg, associate professor of finance at the University of Arizona and co-author of a research paper titled “Status Quo: A Critical Assessment of Lifecycle Investment Advice”; and Lorne Johnson, Head of Multi-Asset Portfolio Design at PGIM Quantitative Solutions.
To hear more from PGIM, tune into our new podcast, Speaking of Alternatives, hosted by Eric Adler, President and CEO of PGIM Private Alternatives. Speaking of Alternatives is available on Spotify, Apple, Amazon Music, and other podcast platforms.

Millions of college students across the US graduate each spring and enter the workforce. When today’s retirees entered the workforce in the early 1980s, pension plans and Social Security benefits were two of the main sources of retirement income. Just a couple decades later, defined benefit (DB) plans were overtaken by defined contribution (DC) plans such as 401(k)s, and an aging population was slowly depleting the Social Security Trust Fund. This was a massive shift in a relatively short period of time, and it forever changed one of the most important and challenging aspects of personal finance.
Workers are facing another pivotal moment in retirement saving, especially as higher interest rates change the investment landscape. What’s increasingly clear is that employer-based plans will play a crucial role in helping people financially prepare for retirement. This episode of The Outthinking Investor brings together fresh perspectives on the future of DC and DB plans in a higher-rate environment, expanding investment options in retirement plans, retirement challenges arising from an aging workforce and growing debt, and more. Our guests are Barb Marder, CEO of the Employee Benefit Research Institute (EBRI); Brooke Masters, US financial editor of the Financial Times; and Josh Cohen, Head of Client Solutions for PGIM DC Solutions.
For more retirement insights, listen to The Accidental Plan Sponsor, a podcast series from PGIM DC Solutions.

The stock market crash of 1929 was a pivotal event that rippled across the globe. The Great Crash rocked financial markets, not to mention the world economy, and proved to be a precursor to the Great Depression. The sudden selloff wiped out the fortunes of investors who were ill prepared to ride out a bear market. Today, investors must heed the lessons from volatile markets of the past and take stock of hidden risks that may reveal themselves as current market conditions evolve. What strategies can investors employ to mitigate downside risks in their portfolios?
This episode of The Outthinking Investor examines risk through the lens of alternatives. Experts discuss the challenges investors face in making the right decisions for their portfolios, taking a holistic view of diversification, and the role that alts can play in both managing risk and capturing opportunities that emerge from volatility. Hear from Victor Haghani, founder and CIO of the wealth advisory firm Elm Wealth and co-founder of Long-Term Capital Management; Apostolos Katsaris, Senior Client Portfolio Manager for PGIM Wadhwani; and Ryan Kelly, Head of Special Situations for PGIM Fixed Income.

Some medical breakthroughs come from unexpected sources. The origins of new weight-loss drugs such as Ozempic—known in the industry as GLP-1s—can be traced back to 2005, when they were introduced as a treatment for diabetes. Two decades later, these drugs have seemingly burst onto the medical scene, gaining notoriety for their ability to help people lose weight and the potential implications for a variety of other business sectors.
This “Ozempic effect” serves as an important lesson for investors: Healthcare innovations often have a cascading impact on the economy and their portfolios. With the healthcare industry working overtime on the next big breakthrough, identifying future winners in the medical field will lead investors to new opportunities. 
The Outthinking Investor gathered insights from experts in the healthcare space to dig deeper into the future of medical innovations and how consumer behavior could change with the rise of weight-loss drugs. Our guests in this episode are Daniel Matviyenko, Managing Director and Portfolio Manager for Jennison’s healthcare strategies; Scott Swanson, Principal and Credit Analyst at PGIM Fixed Income; and Tim Dall, a health economist and Executive Director at GlobalData.

A storm may be brewing off the coast. It is not a new concern for investors, but its intensity has grown. The US federal government owes more than $34 trillion—and counting. This level of debt has the potential to wreak havoc, even for the world’s largest economy. Government debt has grown in other parts of the globe as well, and debt held by consumers and businesses can also pose economic risks. With a tsunami of debt lurking in the distance, investors must take stock of the potential ramifications if it ever crashes onto the shore.
This episode of The Outthinking Investor addresses the economic challenges associated with an increasing debt burden, the impact on inflation, interest rates and financial markets, and fiscal policy prescriptions that could help bring the debt under control. Randal Quarles, former Vice Chair for Supervision at the Federal Reserve; Maya MacGuineas, President of the Committee for a Responsible Federal Budget; and Tom Porcelli, Chief US Economist for PGIM Fixed Income, join the podcast to give a unique perspective on the intersection of debt, fiscal policy and financial markets.