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3+1 weekly market insights

“3 Things You Need to Know + 1 You Don’t!”
The 3+1 Investors Series is BlackRock’s weekly investor video franchise, created to start your week with insights from the voices shaping markets. Featuring the firm’s leading investors, each episode highlights three perspectives on what’s driving markets today.

BlackRock | 3+1 Series
FC Transcript 080526
Episode 115: Jeff Rosenberg

Let’s give it a shot.

Good morning. I’m Jeff Rosenberg, Senior Fixed Income Portfolio Manager for BlackRock Systematic. It’s the week of August 10th. Here are three things you need to know, and one you don’t.

First up…
We've got some important data coming out this week highlighted by Wednesday's July CPI release. We’re in a new era where there’s less forward guidance, and that means more reliance on our own assessments. Some of the things we’re seeing out of our alternative data. Web-scaped inflation data showing some uptick. That should align with the headline inflation. But, some of the interesting things we’re seeing out of wage inflation, with a little bit of uptick from lower wage earners, and a shift between goods and services. We’ve seen some important recent declines with the inflation outlook. Some of this alternative data may show a different perspective on whether that continues and that’s something that we’ll keep an eye out for.

Next Up…
AI is the macro story, and the micro story. In the micro space, we see it in terms of the differentiation between AI winners and AI losers, but it's not just a technology story. We're seeing this across utilities, industrials and that differentiation between winners and losers, creates a tremendous opportunity to add alpha into your portfolios. It’s long/short market-neutral investing. Being on both sides of the trade takes out the market beta exposure and unlocks that alpha opportunity.

Which brings us to…
July’s market performance highlights the need for alternative forms of diversification. This was a market where we saw negative returns from stocks and negative returns from bonds. Bonds are no longer providing that traditional diversification that you expect from fixed income. So taking on strategies that use liquid alternatives can deliver a form of diversifying alpha as an alternative to traditional bond diversification.

And the one thing you don’t need to know…
I just finished a recent triathlon. Here's my finisher medal. I’ve done triathlons for a number of years and what I notice about them is they’re a bunch of former marathoner’s, because you can do them a lot longer. That's why triathlons are better than marathons, because running those 26.2 miles that’s killer.

To get more three plus one and stay up on everything you need to know… And some things you don't, make sure to follow us on LinkedIn and YouTube. We'll see you next week.

3+1 Episode 15: Jeff Rosenberg

In this episode of 3+1, Jeff Rosenberg, Senior Fixed Income Portfolio Manager for BlackRock Systematic, shares what he’s watching across inflation, AI and portfolio diversification, including what alternative data may be signaling and why market-neutral strategies may offer another source of alpha.

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BlackRock | 3+1 Series
FC Transcript 091626
Episode 120: Rick Rieder

Can I keep my sunglasses on? 
Yeah, let’s do it.

Hi, I'm Rick Rieder, Chief Investment Officer of global fixed income at BlackRock. It’s the week of September 21st. This week, we’re taking 3+1 to Future Proof at Huntington Beach, California. Here are three things you need to know, and one you don’t.

First up…
If you go back to last year, I remember saying at Future Proof this is the best investment environment I've ever been associated with. This year, I think people are more on edge. Think about how things have changed. You know, earnings growth has been tremendous, with a big fiscal tailwind, interest rates were lower. Now there’s a bit more, “Okay I gotta think through a lot of these things. It's been pretty good. What do we do from here?” And the themes obviously AI, the debt, interest rates, and then our equities had a good run, what should I do with them? That’s where most of the conversation goes.

Number two.
I think the Fed was in a position that they had to move, given how hawkish they had been in the past. I think the biggest thing for interest rates going forward is the world’s going to try and come up with every answer to what’s driving rates higher. What's more important is actually the questions that you need to ask for your portfolio. And that is, “What do I do to take advantage of rates and where they are today?” From my perspective, you can think about where we’re going. These are yields we haven't seen in our generations. We can create 7% yields in portfolios. I've lived my entire career without being able to create 7%. We can debate why rates are where they are today. I said it’s time to stop talking and start doing. Let’s take advantage of this.

Next up.
I’ve been around this a long time, and when I'm drawn to fixed income it's getting to a boring 7. You know, the sleep at night 7. The percent of securities that get you above 6% in a good environment, meaning default levels stay low is as high as it's ever been. Now there’s a lot of tools. Use things like parts of a high yield market, use Europe, use some of the emerging markets. securitized market is still attractive. I’m now starting to buy some investment grade for the first time in a while. The big thing for us now is get seven, diversify it, and manage the interest rate exposure around it.

And finally.
I went truffle hunting in Tuscany, Italy. We had a dog, from 20 meters away, a tail would go up, he'd get excited and he’d find a truffle. My hot take? There's five essential food groups: peanut butter, bacon, eggs, escargot, and then truffles. My kids always talk about, can we ever get all five in a meal? I think we did it once, but it's pretty hard…with peanut butter.

To get more three plus one follow us on LinkedIn and YouTube. We'll see you next week.

Video Playlist

BlackRock | 3+1 Series
FC Transcript 091626
Episode 120: Rick Rieder

Can I keep my sunglasses on? 
Yeah, let’s do it.

Hi, I'm Rick Rieder, Chief Investment Officer of global fixed income at BlackRock. It’s the week of September 21st. This week, we’re taking 3+1 to Future Proof at Huntington Beach, California. Here are three things you need to know, and one you don’t.

First up…
If you go back to last year, I remember saying at Future Proof this is the best investment environment I've ever been associated with. This year, I think people are more on edge. Think about how things have changed. You know, earnings growth has been tremendous, with a big fiscal tailwind, interest rates were lower. Now there’s a bit more, “Okay I gotta think through a lot of these things. It's been pretty good. What do we do from here?” And the themes obviously AI, the debt, interest rates, and then our equities had a good run, what should I do with them? That’s where most of the conversation goes.

Number two.
I think the Fed was in a position that they had to move, given how hawkish they had been in the past. I think the biggest thing for interest rates going forward is the world’s going to try and come up with every answer to what’s driving rates higher. What's more important is actually the questions that you need to ask for your portfolio. And that is, “What do I do to take advantage of rates and where they are today?” From my perspective, you can think about where we’re going. These are yields we haven't seen in our generations. We can create 7% yields in portfolios. I've lived my entire career without being able to create 7%. We can debate why rates are where they are today. I said it’s time to stop talking and start doing. Let’s take advantage of this.

Next up.
I’ve been around this a long time, and when I'm drawn to fixed income it's getting to a boring 7. You know, the sleep at night 7. The percent of securities that get you above 6% in a good environment, meaning default levels stay low is as high as it's ever been. Now there’s a lot of tools. Use things like parts of a high yield market, use Europe, use some of the emerging markets. securitized market is still attractive. I’m now starting to buy some investment grade for the first time in a while. The big thing for us now is get seven, diversify it, and manage the interest rate exposure around it.

And finally.
I went truffle hunting in Tuscany, Italy. We had a dog, from 20 meters away, a tail would go up, he'd get excited and he’d find a truffle. My hot take? There's five essential food groups: peanut butter, bacon, eggs, escargot, and then truffles. My kids always talk about, can we ever get all five in a meal? I think we did it once, but it's pretty hard…with peanut butter.

To get more three plus one follow us on LinkedIn and YouTube. We'll see you next week.

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