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Midyear Outlook 2018: Risk and resilience

Our views for the second half of 2018

ETF and Index Investment Strategy
July 2018

Key Points

  • Our central themes: Synopsis of BlackRock's key market views in Q3 2018
  • Flows: Exchange-traded product flows as an indicator of investor positioning
  • Options: What options markets tell us about investor sentiment
  • Implementation: How investors might interpret BlackRock's market views

Capital at Risk: All financial investments involve an element of risk. Therefore, the value of your investment and the income from it will vary and your initial investment amount cannot be guaranteed.

This Looking Glass Outlook is an iShares companion guide to the Global Investment Outlook Midyear 2018 published by the BlackRock Investment Institute.

We refresh our 2018 investment themes against a backdrop of steady global growth and strong corporate earnings, but rising uncertainty in the macro outlook. Our base case sees strong US growth spilling over to the rest of the world, sustaining the global economic expansion. Yet the range of possibilities for the economic outlook has widened. On the downside: trade war and overheating risks. On the upside: US stimulus-fuelled surprises. This greater uncertainty, plus rising interest rates, argues for building greater portfolio resilience.


This material is not intended to be relied upon as a forecast, research or investment advice, and is not a recommendation, offer or solicitation to buy or sell any financial instrument or product or to adopt any investment strategy.