In the new year, Blackrock puts forward three investment strategies: broaden investment horizons, beware of habitual prejudice, pay attention to the risks caused by geopolitical factors, and need a new investment manual.
The "miserable" 2022 has passed, will the new year be good?
Blackrock warned on Wednesday that the market was being hit by an epic macro storm and that investors needed to prepare for a new round of volatility and persistently high inflation in 2023.
Blackrock strategists pointed out in the latest report that the market was hit extremely last year, stocks and bonds were sold off sharply, and the S & P 500 index recorded its biggest decline since 2008. As inflation cools and the Fed returns to raise interest rates, some bulls are optimistic about the recovery, but the stock market is still under the weight of a macro storm.
Standing at the starting point of the new year, Blackrock puts forward three investment strategies: first, investors need to broaden their investment horizons and beware of habitual prejudice; at the same time, they need to pay attention to the risks caused by geopolitical factors; and finally, they need a new investment manual. Under the new paradigm of increasing macro and market fluctuations, portfolio changes will be more frequent.
Blackrock predictsAlthough inflation will continue to cool as spending patterns normalize and energy prices fall, it will remain above the Fed's 2 per cent target over the next few years.
At the same time, warn against counting on the Federal Reserve to bail out the market.Blackrock said:
We are seeing a stock market rally based on hopes of rapid interest rate cuts receding.
Why? The Fed is unlikely to rescue the market in the middle of a self-inflationary recession aimed at bringing inflation down to its policy target.
Last year, the Fed raised interest rates by 425 basis points in an effort to curb inflation. Powell, chairman of the Federal Reserve, said he would continue monetary tightening in 2023 and planned to raise interest rates to 5.1 per cent.
Many economists have said that such high interest rates can easily make the economy over-tighten and fall into recession. Blackrock had previously warned that the recession was coming, but this was not fully reflected in corporate performance.
Edit / phoebe