The BlackRock Investment Institute (BII) explore key themes and investment views in their 2023 Global Outlook.
The regime of greater economic and market volatility is playing out – and not going away. Central banks won’t ride to the rescue in recession, contrary to what investors have come to expect. This regime requires a new investment playbook. It involves more frequent portfolio changes and more granular views that go beyond broad asset classes.
The BlackRock Investment Institute’s 2022 Midyear Outlook explores the shift to a new, more volatile regime through the lens of three investment themes – and translates them into updated asset views.
The global economy is slowing sharply and inflation is at multi-decades highs: we anticipate what we call "inflationary recessions" in many major economies over the next 12-18 months. Central banks are hiking interest rates, targeting price stability over economic growth. In our view, this is a notable positive to the current challenging conditions, on two fronts. It will help ward off 1970s-style stagflation. It also signals the end of the era of financial repression. For insurers, rising interest rates are a silver lining with investment returns set to improve.
The Swiss Re Institute Biodiversity and Ecosystem Services (BES) Index assesses which economic sectors are most reliant on nature and evaluates the exposure each country has to BES decline.
Countries around the world depend on a range of vital natural services to help maintain the health and stability of their communities and economies. Better known as biodiversity and ecosystem services, these include food provision, water security and regulation of local air quality among others.
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International equity markets rebounded in the third quarter, enough so that most of the major indexes recovered to near where they were on January 1. Hopes for a vaccine-driven reduction in COVID infections and for more government financial stimulus (both of which seemed less likely by late October) gave investors some renewed optimism.
Of Brexit and Backbenchers: How Bad is UK Political Risk?
