BlackRock: 'We shun most stocks" amid unrealized recession risk

[mahatmakanejeeves]

Just one outfit's opinion. YMMV.

Yahoo Finance

BlackRock: 'We shun most stocks' amid unrealized recession risk

Alexandra Semenova · Reporter
Wed, September 28, 2022 at 1:20 PM · 2 min read

The world’s largest investment manager is avoiding the stock market and warning investors to do the same.

Strategists at BlackRock’s (BLK) Investment Institute said in a note published Monday that the firm was shunning “most stocks” as monetary policymakers underestimate the severity of a potential recession that could ensue from aggressive rate hikes.

“Many central banks, like the Fed, are still solely focused on pressure to quickly get core inflation back to 2% without fully acknowledging how much economic pain it will take in a world shaped by production constraints,” a team led by Jean Boivin wrote in the note. “We’re tactically underweight developed market stocks and prefer credit.”

BlackRock’s message comes amid a brutal rout in equity markets that has all three major averages in bear market territory. As of Tuesday’s close, the benchmark S&P 500 was roughly 24% below its January all-time high, while the Dow was down about 21% over the same period. The technology-heavy Nasdaq has plunged 33% since peaking in November 2021.

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[Tomconroy]

1. Seem to like global inflation linked bonds and bonds

From large corps with good balance sheets. Everything else they are neutral or underweight.

They seem to think there will be a serious recession.

[mahatmakanejeeves]

2. If BlackRock and I were in the same room, I would say, "huh, what do they know?" and

assuming that I was the smarter person in the room, start buying anyway.

And good morning.

[Tomconroy]

3. It's probably a good idea to buy stuff when it's cheap.

If that was their advice maybe they should have told us a year ago. I could have loaded up on Pago Pago inflation hedged gilts. Now everybody's got em.
And Good Morning!

[twodogsbarking]

4. A stock broker is someone who invests your money until it is all gone.

[progree]

5. Historically, the best time to buy has been when negative sentiment is highest. So articles

like these make me even more confident in my buying decision. Keep 'em coming!

Not to mention the unsurpassed historic record of the results of buying stocks on sale (I own broad-based mutual funds and ETFs almost exclusively; i only have one individual stock, a boring utility. I would never make a claim like this about individual stocks unless it was a huge diversified basket of them)

[PoindexterOglethorpe]

6. And the best time to sell is when positive sentiment is highest.

Not that I buy individual stocks myself, but I'm very aware of these things.

I have an investment advisor I trust very much. He's done very well for me for nearly 20 years. He's also very good about keeping me informed about whatever is going on.