2021 Midyear Outlook

The economic restart is real, and it is broadening out globally. But what comes next?

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Our first theme for the rest of 2021 is what we call the new nominal, whereby we expect higher inflation in the medium term as a result of more muted monetary policy response to inflation than in the past. We're turning even more positive on European equities and upgrading Japanese equities to neutral. We are moderating our view on US equities to neutral.

Our second theme is China stands out. Chinese assets play a key role in an increasingly bifurcated US-China world, and they need to be considered as a standalone asset allocation. The quality revolution in China, putting the quality of growth over the quantity of growth, makes us tactically neutral on Chinese equities as strategically overweight.

Our third theme is the net zero journey. Our journey to net zero in terms of carbon emissions has a clear starting point and a destination. But there's no roadmap, and we see many zigzags along the way. While overweight, the tech sector is better positioned for the green transition.

The bottom line is, as the economic restart broadens out, we remain pro risk even though the path for risky assets to push higher is getting narrower.

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What comes after the economic restart? We see three themes for markets shaping the remainder of the year. Watch Wei Li, Chief Investment Strategist, explain on BlackRock Bottom Line and read the BlackRock Investment Institute’s Midyear Outlook.

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Our net zero commitment

Marcia Moffat: Hello and welcome to BlackRock in Canada. We have been here in Canada for 30 years. 

And we employ over a 100 people and manage $260 billion of assets, we’re proud to have deep and longstanding roots in this country. 

Our purpose both in Canada and globally is to help more and more people experience financial well-being by making investing simple and accessible.

We partner with Canada’s leading institutions like corporate pension funds and insurers to help them create value for their stakeholders and clients. Through our iShares franchise, we offer investment solutions to help investors of all kinds achieve sustainable financial well-being. In every decision we make, we put our clients first.
 
Last year, in January 2020, we published a letter setting out our ambitions for BlackRock to play a leadership role as a sustainable investor for our clients, on whose behalf we invest. I am delighted to say that, since then, we have delivered some good progress. 
 
• Few highlights include that, today, all of our active and advisory strategies are ESG integrated – covering US$2.7 trillion in assets;
 
• we introduced 93 new sustainable solutions in 2020, helping clients allocate billions of dollars to sustainable investment strategies over the year;
 
• and we have added 1,200 sustainability metrics to our technology platform to help clients better understand ESG and physical climate risks.
 
Now, we’re in 2021, and we are pushing ahead once again. We have announced a set of actions that we are taking to help move our clients’ portfolios – and the Canadian and global economies – towards the crucial target of net zero carbon emissions by 2050.
 
The net zero transition is an imperative for society and for the planet, and it will reshape the global economy, offering a number of exciting investment opportunities. This is an important moment for us all.
 
Whether you are an existing or prospective client, whether you are a possible future colleague, whether you are a business partner, or an interested member of society, welcome to BlackRock.”

Investing sustainably for our clients

Watch Marcia Moffat, Country Head of Canada, share the progress that BlackRock is making to help our clients invest in a better, more sustainable future.

BlackRock in Canada

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Where we stand

Sustainable solutions
Sustainable solutions
We build investment products that can do more than grow your money. Align your investments to your values with funds that support ESG considerations.
Corporate sustainability
Corporate sustainability
We put an unwavering focus on long-term sustainability and ensure it is embedded across our entire business.
Investment stewardship
Investment stewardship
We engage with companies to inform our voting and promote sound corporate governance that is consistent with sustainable, long-term value creation.