Q2 2021 EMEA Implementation guide

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Keep it brief

  • In our Q2 2021 implementation guide, we look at how investors can position for Q2 2021, with an outcome-orientated approach to the key investment themes laid out in the BlackRock Investment Institute’s 2021 Global Outlook.
  • The pandemic has been a great accelerator of profound shifts in how economies and societies operate. We see the path out of the Covid-19 shock as a ‘restart’ – not a typical business cycle ‘recovery’ – due to the distinct nature of the shock, broad-based pent-up demand and different inflation dynamics this time around – and we believe the restart will likely be stronger than markets expect.
  • Download the full Guide to discover how these market views could translate into implementation ideas across asset classes, geographies and sectors for index, alpha-seeking, alternative and cash funds.

Key Themes

  • We prefer to take risk in equities over credit amid still relatively low rates and tight spreads – especially cyclically-tilted equities, which look well-positioned to benefit from the global restart – and prefer higher strategic allocations to inflation-linked bonds.

  • Strategically, we see Chinese assets as core holdings that are distinct from emerging market exposures, as potential sources of return and diversification in portfolios. We favour China and EM ex-China exposures as building blocks for a more tailored approach to EM equities.

  • We like sustainable assets, amid a growing societal preference for sustainability, and exposures like technology, which offer quality characteristics and are likely beneficiaries of structural growth trends.

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 March 2021 and may change as subsequent conditions vary.

Download the Q2 2021 EMEA Implementation guide
The pandemic has been a great accelerator of profound shifts in how economies and societies operate. We see transformations across multiple dimensions potentially leading to a new investment order.
Front cover of the implementation guide