22 May 2018
Markets have been volatile since the start of 2018, bringing greater focus onto the asset mix in client portfolios. Michael Gruener, Head of BlackRock EMEA Retail, discusses what clients have been telling him and what BlackRock can do to help.
“At a recent investor summit for a major client, the message could not have been clearer: volatility is back and the outlook is less certain than 2017. While investors – and BlackRock – remain relatively constructive over the state of the global economy over the next 12 months, the big question starting to arise is: what after that?”
From my perspective, none of the current signals – US 10-year Treasury yields breaking 3%; broad money trends; slowing economic momentum – is a particular cause for alarm. But perhaps we are coming to the end of this long phase characterised by alternated ‘risk-on, risk-off’ periods . Maybe there will be more reward for bottom-up, fundamental stock picking, illiquidity premia and specialist markets.”
Investments are not binary. There are always nuances and different ways to tackle an investment challenge. As much as our clients are telling us they need captains, we reply that they require a toolkit which harnesses the power of data and modern technology and embraces a holistic set of portfolio construction capabilities.”
Read the full article on BlackRock’s website.
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