BlackRock Investment Institute have a very downbeat outlook on global stock markets.

On the US:

  • We are underweight. Financial cracks are emerging from Fed rate hikes. We don’t think earnings expectations reflect the recession we see ahead.

On Europe:

  • We are underweight. The impact of higher interest rates and elevated inflation pose a challenge for earnings, even as the energy shock fades.

On the UK:

  • We are underweight. Earnings expectations don’t fully reflect the economic damage we see ahead.

I posted earlier on the firm's CEO's outlook, he sees as many as 4 more Federal Open Market Committee (FOMC) rate hikes to come:

Rick Reider is BlackRock's global fixed income CIO & PM, BlackRock is a multi-trillion fund manager