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Global Markets Overview: August 2021

Investments
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By David Hoile | August 25, 2021

Tracking recent asset price moves and our outlook

In this month’s Global Markets Overview:

Key Points for August

  • On the capital markets front: Our forward-looking analysis of pricing and fundamental conditions in illiquid asset markets, suggests that implied illiquidity risk premia – the compensation we estimate you can receive for bearing illiquidity risk –have settled at close to fair value in aggregate.
  • However, digging deeper into specific illiquid asset markets, we find that selective credit, real estate, and infrastructure assets still appear to offer good compensation for illiquidity.
  • On the economics front: On 10 August, the US Senate passed a bipartisan $1trn infrastructure investment bill. The Biden administration is also developing separate plans for a $3.5trn budget package, currently at the proposal stage. For context, the size of the US economy was c. $21trn in 2020.
  • Our outlook for bond, credit, equity, and private markets, summarised in this report, accounts for the likelihood and size of different stimulus plans and the range of their impacts on growth, prices, and taxes.

To stay up-to-date and receive additional special feature reports from Willis Towers Watson on global capital markets, please contact David Hoile.

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Senior Director, Investments

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