Blackrock is one of the largest wealth managers in the United States. One. The world warns that 2023 will be a recession unlike any other in the past. As part of its recently published 2023 Global Outlook Report, Blackrock says a world defined by a supply-based economy and high levels of inflation calls for a new economic strategy.
BlackRock Forecasts Recession, Sustained Inflation
BlackRock, a wealth management and investment firm, has released its forecast on the impact on financial markets in the coming year. did. The company, which is estimated to have $8 trillion in assets under management, sees a period of recession caused by the central bank’s anti-inflation policies. But according to his 2023 Global Outlookreport, this recession will be different from previous recessions.
The report explains:
A recession is predicted as central banks race to keep inflation under control. This is the exact opposite of past recessions. In our view, accommodative policies do not help support risk assets.
In addition, Blackrock is unprepared for this downturn as the economic damage caused by central bank actions is still mounting, and stocks could take a further hit. I predict that it will be high. On inflation, the report says the central bank needs to stop tightening policy before it hits its intended inflation target and triggers an economic crisis.
On this point, the report concludes, “Even if a recession comes, we think we will live with inflation.”
Consolidated bull market not on horizon
Company says old strategy of ‘buying dips’ is inefficient, new economic configuration requires new ways to confront markets We believe that there is a need for a continuous reassessment of how dynamic policies create economic damage.
As a result, the report declares:
The prospect of sustaining a joint bull market in equities and bonds like the one we have experienced. No regression is seen. For the last 10 years.
The company has also published views on cryptocurrencies and cryptocurrency companies in the past. Blackrock CEO Larry Fink, formerly one of the largest cryptocurrency exchanges in the market, said he believes most cryptocurrency companies will not survive the collapse of FTX. rice field. However, he recognized the importance of blockchain technology as a tool for tokenizing securities as part of next-generation markets.
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