BlackRock only likes a handful of assets - here’s what they are

BlackRock’s investment institute likes Japanese equities and inflation-linked bonds but is avoiding almost every other asset in an environment where opportunities are harder to come by.

“The higher interest rate environment kind of just takes the fun out of everything,” BlackRock Asia Pacific chief investment strategist Ben Powell told Markets with Madison.

“The era of ‘just being long the market and don’t touch it’ is going to be more difficult moving forward.”

Conflict in the Middle East would deepen the de-globalisation trend, causing higher inflation worldwide, Powell said.

“We’re seeing a more fragmented world, I think that pertains to supply chains, maybe even capital markets and sadly to the geopolitical arena.

“I think we’re going to see more of this complexity ahead and that’s something that as investors we need to be mindful of.”

Watch today’s episode of Markets with Madison above to see Ben Powell explain BlackRock’s recently released fourth-quarter portfolio playbook and the five mega forces it thinks will cause seismic shifts for companies and investors.

Get investment insights from the experts on Markets with Madison every Monday and Friday on the NZ Herald.

Disclaimer: The information provided in this programme is of a general nature, and is not intended to be personalised financial advice. We encourage you to seek appropriate advice from a qualified professional to suit your individual circumstances.

Stake is the proud sponsor of Markets with Madison. Stake your claim today at HelloStake.com.Madison Reidy is the host of New Zealand’s only financial markets show Markets with Madison. She joined the Herald in 2022 after working in investment, and has covered business and economics for television and radio broadcasters.