BlackRock Investments: Stocks, Bonds, and Beyond
Investing in Stocks and Bonds has long been considered a reliable way to grow one’s savings. But with volatile markets, investors are increasingly looking for alternatives. Asset management company BlackRock Inc (NYSE: BLK) is at the center of these changing investment trends. BlackRock is the world’s largest asset manager and is now leading the way in introducing new and innovative products to the market.
BlackRock’s Rick Rieder recently suggested that the traditional 60/40 stock/bond portfolio should be flipped to 40/60 this year, with a focus on international Stocks. In a recent Bloomberg piece, Rieder also commented that investors should be wary of traditional fixed income Investments and should consider diversifying Investments into ETFs and other asset classes.
At least 200 financial institutions around the world have had exposure to Adani Group’s $8 billion in dollar Bonds, most of which slid into junk status in March. BlackRock, one of the world’s largest bond holders, has been vocal about its opposition to Adani’s plans for a coal mine project in Australia. BlackRock has also committed to reducing its exposure to companies that are heavily reliant on coal for their power generation and mining activities.
Silvergate Capital, a bank that specializes in digital currency, has been struggling in the wake of the pandemic. Despite the double-digit drop in its stock price, BlackRock believes Silvergate’s turnaround plan is achievable and that the stock could be a buy.
BlackRock has also made its mark in the stock market with its stake in GameStop Corporation (NYSE: GME), a video game retailer. BlackRock is raising the stakes in the company, which has seen its stock price soar in recent months.
In addition to Stocks and Bonds, BlackRock is also expanding its presence in the ETF space. Vivek Ramaswamy, CEO of Roivant Sciences, is vying to be the anti-BlackRock and wants state pensions to work with him instead. Ramaswamy believes his ETFs can provide better returns than traditional index funds.
The Federal Open Market Committee (FOMC) has been closely monitoring the markets since the start of the pandemic. BlackRock’s Rick Rieder, a managing director and the chief investment officer of global fixed income, recently commented on the FOMC’s responses. Rieder believes the FOMC’s actions have been effective and that the bond market is well positioned to withstand the current economic downturn.
Shares of Baidu (NASDAQ: BIDU) popped by more than 10% in morning trading on Wednesday after an SEC filing from BlackRock Asset Management revealed that the company had increased its stake in the Chinese tech giant.
Finally, BlackRock has joined forces with the neobroker Bux to offer low-cost savings plans that use exchange traded funds (ETFs) in a push by the world’s largest asset manager to appeal to younger investors.
