For qualified investors

Navigating markets in Q3

10-Jul-2017
By BlackRock Investment Institute

The global economy has settled into a steady growth rate slightly above the post-crisis trend. In fact, our BlackRock GPS suggests G7 growth over the coming year is set to comfortably exceed current consensus forecasts. Investors may want to embrace the implications of a durable economic expansion and may favour risk assets like stocks over bonds.

Three themes to consider

One

Sustained expansion

We believe the current cycle won’t die of old age any time soon. The economy still has slack for the recovery to chug on.

 

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Two

Rethinking risk

Low volatility is no cause for alarm in and of itself. Placid markets are the norm when the economic backdrop is benign.

 

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Three

Rethinking returns

Long-term bond yields are likely to remain low. This suggests stock valuations may not snap back to historical averages.

 

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