The world’s largest asset manager is neutral on stocks despite recent losses.
While US stock markets have suffered their biggest year-to-date losses in decades, BlackRock has indicated that it will not be taking the opportunity to 'buy the dip'.
In a weekly note from the BlackRock Investment Institute, the world’s largest asset manager said it was neutral on stocks over the next six to 12 months.
This view, BlackRock said, boiled down to three main reasons, including increasing downside risks for profit margins in the future.
“We expect the energy crunch to hit growth and higher labor costs to eat into profits. The problem — consensus earnings estimates don’t appear to reflect this,” the firm said.
Read full article: https://www.investordaily.com.au/markets/51529-we-re-not-buying-the-dip-blackrock
Blackrock BLK says that it’s not buying the stock dip because valuations haven’t really improved. The world’s largest asset manager says there’s a risk of Fed overtightening, and profit margin pressures are mounting. Do you agree?
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