“Risk Assets Have Room to Run”

“Risk Assets Have Room to Run”

$SPY, $BLK

In a report, the majority of BlackRock Inc.’s (NYSE:BLK) Top decision-makers had a simple conclusion after gathering in London last week: A supportive backdrop for risk assets probably has “room to run” for at least 12 more months.

Senior leadership at the world’s largest asset manager cited easy monetary policies and few signs of financial imbalances, BlackRock’s Jean Boivin, Elga Bartsch and Scott Thiel wrote in their report.

Still, trade and the Fed remain Big Questions.

Escalating tension between the US EU, China, Canada and Mexico compounds growth risks, while the market may have been too aggressive in pricing in significant interest rate cuts by the Fed, they said.

“We see this week’s FOMC meeting providing an opportunity for the Fed to manage market expectations, as the market’s pricing of rate cuts has materially diverged from the Fed’s patient policy stance,” Boivin, Bartsch and Thiel wrote.

BlackRock’s overweight recommendations over a 3-month horizon include US stocks, emerging-market equities and Asian sans-Japan shares as well as US municipal bonds, while it’s underweight European equities and bonds.

HeffX-LTN’s overall technical outlook for the broad US market (SPY) is Bullish in here, with all 3 of our Key technical indicators flashing Very Bullish

Stay tuned…

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Paul Ebeling

Paul A. Ebeling, polymath, excels in diverse fields of knowledge. Pattern Recognition Analyst in Equities, Commodities and Foreign Exchange and author of “The Red Roadmaster’s Technical Report” on the US Major Market Indices™, a highly regarded, weekly financial market letter, he is also a philosopher, issuing insights on a wide range of subjects to a following of over 250,000 cohorts. An international audience of opinion makers, business leaders, and global organizations recognizes Ebeling as an expert.

One Response to "“Risk Assets Have Room to Run”"

  1. Paul Ebeling   June 19, 2019 at 8:28 am

    Friends,

    It is a quiet morning on Wall Street, as investors prepare for the release of the Fed’s latest policy directive following the conclusion of its 2-day policy meeting.

    The S&P 500 futures trade 3 pts above fair value.

    The market received a boost yesterday from President Trump saying trade talks with China are set to resume.

    Stay tuned,

    Paul

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