BlackRock, the largest fund manager on the planet, is quite pessimistic about the outlook for the Stock Market in the coming months. That is why it is recommended to its clients to reduce the risk of their portfolios.
Javier García Díaz, BlackRock’s head of sales in Spain and Portugal, explained that the firm has “a tactical position of underweighting equities in developed markets.” According to the vision of the group’s research institute, there is an increasing risk that the central banks of the United States and the European Union “exceed the brakes” when it comes to raising interest rates to control inflation.
This negative view is both for the US stock market and for the European markets. “We must remember that here we are experiencing the greatest crisis in decades, with the war in Ukraine, which we do not know when it will end, and which will continue to make energy and raw materials more expensive,” says Gracía Díaz.
This BlackRock tactical view covers a 6-12 month time horizon. “However, we do continue to believe that at a structural level the stock market is a very attractive asset and that it is essential to include it in portfolios”, explains the manager.
BlackRock economists also predict that in the coming months there will be greater macroeconomic volatility. “This is going to force us to be faster when it comes to defining client portfolios and to be more selective when we invest.”
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