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.
