ICYMI - Blackrock downgraded its view on credit, government bonds

Author: Eamonn Sheridan | Category: News

BlackRock is the world's largest asset manager (circa $7.4 trillion in assets under management the last time I looked). 

  • said it's turned bearish on credit and government bonds
  • has downgraded the two asset classes to underweight over the long-term
Are looking for nominal yields this year
  • citing high valuations, inflation expectations, stronger economy on the back of the Covid-19 vaccine rollout, potential for as much as $2.8 trillion of additional fiscal stimulus
If you've been tracking economic and market developments you'll recognise nothing new here in the view. 

On stocks:
  • "We turn underweight credit due to rich valuations and are now modestly overweight equities"
  • "Equities valuations are also closer to long-term averages after factoring in historically low interest rates and an improving earnings outlook."
This info comes via Bloomberg and there is more info here at the link (an ungated source), the article brings up a few more interesting points and is worth a read (it isn't long) if you are interested. 

Here's a pic of the wrong BlackRock (one for the bayside Melbourne folks) 
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