BlackRock: Away from stocks and bonds, recession is coming

[OZER]

BlackRock does not "see" in any case inflation in the amount of "gold" 2%

"Limit your exposure to risky assets" recommends the investment giant BlackRock, due to the shock that markets and economies are experiencing from the situation prevailing in Energy.

At the same time, the house remains underweight in bonds due to the inflationary environment, as it points out in its new report.

The ECB will confirm this week that interest rates are about to rise, with markets expecting surges until 2023. For its part, the Fed will reach its maximum interest rate by the end of the year. this year, with BlackRock arguing that eventually the sum of the increases will prove to be historically low, as central banks will choose to live with inflation so as not to affect growth.

"The problem, however, is that the markets are 'seeing' too much tightening and therefore we remain neutral on assets in the short term."

Inflation

Inflation in the euro area is mainly due to energy and food - especially after the war in Ukraine.

In the US, on the other hand, inflation is broader, with increases due to goods and energy.

"We have entered an era in which production constraints have become the dominant levers of inflationary pressures," he said.

"Think about bottlenecks and difficulties in production, supply, transportation and staffing."

In any case, the dilemma is as follows: Lower unemployment, growth or inflation, and alternatively lower prices, but recession... In other words, BlackRock does not "see" in any case inflation at the level of "gold" 2%.

This leaves the door open for excessive tightening...

The situation is worse in Europe. Markets expect the ECB to raise interest rates enough by 2023 to curb inflation, which "ran" on an annual basis by 8.1% in May.

In other words, as the investment firm points out, interest rates will rise rapidly as they leave the negative ground, risking a recession, as they did during the 1970 energy crisis.

Last week's decision by the European Union to ban crude imports from Russia is the latest example of how the West is determined to wean energy from Russia.

This situation, however, raises oil prices and slows down economic activity.

[riki]

Coinbase is the worse! They should  be bannned!

[akb]

Citadel will pop next

[fav_]

In my life i have learned that whenever people propose  some fantastical business opportunity like you pay 10000$ today and in a week you get 18000$ I simply runaway. People that actually have that ability don#39t need your 10000$ to begin with

[liya]

Can't know how I bumped onto this. Anyway Damn good  ️. I also have been watching those similar from mStarTutorials and kinda wonder how you guys make these vids. MSTAR TUTORIALS also had cool info about similiar make money online things on his channel.

[anne]

Maybe people didn't get the memo yet but the entire country is in a recession right now. Everyone is taking a bath. The crypto markets crashed. The stock markets crashed. People are barely able to afford gas rent and groceries. 50k cars arn't going to be flying off the lots anymore.

[pit]

services that are used for inflation should be comparable and easily measured, however this is an old way of thinking to keep calculations simple and easy to track. However society and technology have gotten more advanced. Why can't there be a more advanced inflation model be created that factor in for inconsistent products and services such as housing, food and electricity? Seriously, google can on the fly calculate ideal driving directions instantly for many millions of drivers at any given moment in the day around the world, but economists are limited to the easiest goods and services to track? There are online bots that track prices constantly for deals for consumers. Builders, realtors, property assessors, and so forth have a wealth of information to price homes. Builders may even go with price multipliers to get a general price for out of state pricing. Inflation likes to avoid volatile prices, but the reality is people are buying this constantly that are priced this way. If bots can get pricing and figure our averages and trends on a per product basis, why can't that be used for inflation? I'm no economist, and I don't care for reasons that equate to "it's too hard", when that's not how we got to this point in society. Trillions are at stake based what economists says about the economy, so why not spend more on getting better information.I get that the basket of good

[sag]

I sincerely wonder how many millions of USDT Do Kwon personally made from this scam and if he will go to jail for his economic crimes

[dent]

Thanks biden

[DAP7]

I think the obvious reason Musk is scarred is that he personally is now hugely overleveraged.  His Tesla stake is now collateral for the stupid bid for twitter.  Both companies might continue to be profitable while he could be wiped out by a simple little market selloff.

[atan]

lose if things go wrong, and perhaps withdraw the principal out at one point and risk only the earned gains if at all

[shaw]

du kwooon entertain us with his obsesion...

[aaaaa]

IT'S AN UNFORTUNATE REALITY, BUT THAT'S WHAT WE DO AS INVESTORS. Couldn't have been said any better. You just have to listen.

[tyo]

We dont want to stop inflation tho. Deflation is much worse then a bit extra inflation

[bay8]

"All security analyst fooling the public with praising some stock using bright project statement but actually praising trash"br  -The intelligent investor