BlackRock (NYSE:BLK), the world’s biggest asset manager is still backing stocks after recent market volatility triggered by rising bond market borrowing costs.
World stocks saw some volatile consolidations since late January as bets on a strong post-VirusCasedemic rebound in the global economy drove US Treasury bond yields up, the main driver of borrowing costs.
“We still believe the new normal will support equities and risk assets over the next 6 to 12 months,” BlackRock’s Investment Institute economist said, referring to an expectation the world’s leading central banks will keep bond yields low.
In recent wks, BLK, the fund giant, which manages nearly $9-T worth of assets has turned “overweight” stocks on a “strategic horizon” due to “a better outlook for earnings amid moderate valuations”.
Have a healthy day, Keep the Faith!