Russ Koesterich and his Investment Strategy Group take us through the highs (emerging-market stock rally) and lows (global bond selloff, momentum trades losing momentum) in April while offering their thoughts on what is next for financial markets.
Investor angst is high over the Federal Reserve increasing interest rates: It has been nearly a decade since the Fed last raised rates, and this promises to be a very different tightening cycle compared to the past. Russ Koesterich discusses what the impact of the Fed moves could be, particularly for equities.
Municipal bonds were down modestly in April amid increased interest rate volatility and a pick-up in new issuance. BlackRock muni pros suggest bracing for more volatility, but believe near-term pullbacks may present buying opportunities.
Declining U.S. growth and rising European growth in the 1Q looks less like divergence and more like convergence. Risk assets appear too complacent, leading us to upgrade our caution over the next few months.