Market backdrop. The S&P 500 broke a three-week losing streak last week and rose 3%, while U.S. 10-year Treasury yields hit new 2024 highs. The global economy faces uncertainty amid geopolitical tensions and inflation concerns. Investors are closely monitoring central bank policies and corporate earnings.
With stocks under pressure and rate cut hopes fading, we think the bar is higher for tech firms to deliver on earnings expectations – and for traditional sectors to show resilience. BlackRock Investment Institute on Monday cut its rating on developed market equities to 'neutral', after being 'overweight' since the end of last year.
BlackRock Investment Institute expects U.S. equity returns to lag developed and emerging markets over the next 10 years. The shift in their stance reflects concerns about valuations, earnings growth, and geopolitical risks. Investors may need to reassess their portfolios and consider diversification strategies.
Last year, $1.8 trillion was invested in relation to the energy transition, up from $33 billion in 2004. However, BlackRock says there's still a long way to go in achieving sustainable and inclusive growth. ESG factors are increasingly important for long-term investment decisions.
Ben Powell, Chief APAC Investment Strategist at BlackRock Investment Institute, discusses his market outlook, after the Fed announced a rate hike. Powell emphasizes the need for active management and risk mitigation in a volatile market environment. Investors should stay informed and adapt to changing conditions.
BlackRock became the world's largest asset manager in part because of its passive investment vehicles that have ballooned in size. The rise of index funds and ETFs has transformed the asset management industry, offering cost-effective and diversified investment options for retail and institutional clients.
BlackRock Investment Institute still favors buying US equities, stays tactical overweight, despite concerns about falling inflation and the prospect of the Federal Reserve tightening monetary policy. The U.S. remains a key market for long-term growth opportunities, supported by innovation and strong corporate earnings.
'Time to switch off the investing autopilot,' says BlackRock Investment Institute. In its 2024 outlook, the US giant's research body warns investors to be proactive and flexible in their investment decisions. Market conditions are evolving rapidly, requiring a dynamic approach to portfolio management.
