21 October 2015

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The Q4 2015 instalment of Looking Glass – our investment outlook for advisers – is out now.

Inside you’ll find a distillation of the best of BlackRock’s views on markets, insights into investor trends and where we see opportunity as we head towards the end of 2015.

At summer’s end

After something of a global equity rally (week ending 9 October 2015 was the best weekly equity rally since 2011, as shown by Bloomberg data), now seems like a good time to take a step back and assess portfolios following what was an unusually hectic summer for investors. Concerns about global growth, worries over the Chinese economy, the August sell-off, the ‘will-they-won’t-they’ Fed discussion, an ongoing commodities rout; there’s barely been time to pause for breath.

What is clear is that that markets have become more volatile. As you can see in the chart below, over the summer the oft-referenced VIX ‘fear index’ hit levels not seen since 2011. Many investors are understandably feeling anxious about the near-term outlook. However, as you will read in Looking Glass, we believe that opportunities do lie amidst the volatility – but investors should take steps to protect themselves against the ‘correction episodes’ that we believe could become more frequent.

Equities finally react

Equities finally react

Source: Bloomberg, data as at September 2015. Percentage total return is calculated using Bloomberg indices. VIX measures US equity volatility, CVIX measures currency volatility, and MOVE measures rate volatility. Rebased to 100.

Get in touch

If you’re interested in finding out more about any of the themes or funds mentioned in Looking Glass please get in touch with your local BlackRock relationship manager.

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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 securities or financial product or to adopt any investment strategy. The opinions expressed are as of 16 October 2015 and may change as subsequent conditions vary.

We believe that opportunities do lie amidst the volatility – but investors should take steps to protect themselves.