3+1 Active Investor Series

VIDEO SERIES

“3 Things You Need to Know + 1 You Don’t!”
The 3+1 Active Investors Series is BlackRock’s weekly investor video franchise, created to start your week with insights from the voices shaping markets. Featuring the firm’s leading active investors, each episode highlights three perspectives on what’s driving markets today.

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PL Transcript 072126
Episode 113: Rick Rieder

I’m doing okay. Can I turn the volume up a little bit?

Good morning. I'm Rick Rieder, chief investment officer of global fixed income at BlackRock. It’s the week of July 27th. Here are three things you need to know, and one you don’t.

First up…
The Federal Reserve is gonna meet this week. We have a new Fed chair, and we’re learning more and more about how he’s thinking about the world. There’s been one very critical thing that chair Warsh has said: He’s focused on the left side of the decimal place versus the right. That is a big change. The left side means it’s the big number. They’re focused on, is it 2%? Is it 3%? Less of this trivial focus on hundredths of a basis points of inflation. And, I think that reduces volatility, because he’s looking at the big picture. How he frames that in this meeting is going to be fascinating.

Next Up…
This week, we’ve got 34% of the S&P reporting. And, I think one of the things is that when you come out the other side and you think about, okay when I look at my equity holdings I need growth. Who’s still got durable persistent growth? Where should I continue to ride it, and then take a step back and say, where’s the growth? Where are my multiples now, given some volatility, and then where do I wanna position the portfolio?

Which brings us to…
There’s a real nuance to today’s inflation. Core goods, goods inflation, is non-existent. Then you look at education, healthcare — sticky non-interest rate sensitive, not cyclical. Big thing with this inflation, you’re seeing it play out very clearly: The mortgage rate that’s moved up. To make mortgage payments is significantly more expensive than rental. So what happens is people are renting, rent prices stay firm. It's why you have inflation that is higher than it should be. It's very different in the past. If you actually bring down the interest rate, you’ll create more housing inventory that's out there, and that will bring inflation down.

And the one thing you don’t need to know…
I’m the biggest fan in the world of the Baltimore Orioles. I took my grandson. So far he’s 2-0. So I'm taking him to every game, because he seems to be the lucky charm we’ve been waiting for. My hot take? We’re gonna make the playoffs this year, and then who knows what can happen from there.

To get more three plus one and stay up on everything you need to know… And some things you don't, make sure to follow us on LinkedIn and YouTube. We'll see you next week.

3+1 Episode 13: Rick Rieder

In this episode of 3+1, Rick Rieder, BlackRock’s CIO of Global Fixed Income, looks at several variables that could shape the outlook for investors.

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BlackRock | 3+1 Series
FC Transcript V1 060826
Episode 112: Nick Nefouse

I’m just trying to think of a line, though. You want me to do it? Okay.

Hi, I'm Nick Nefouse, I’m head of the retirement solutions team and head of Lifepath. Today we're going to
be talking about staying active in your portfolios. Here are three things you need to know, and one you
don’t.

Number one.
We've seen diversification become more challenging really in the last couple of years. Inflation is what's
causing some of these diversification problems. When you’re seeing higher inflation, or even volatile
inflation, it tends to impact fixed income markets, and the ability for fixed income markets to diversify.
Secondly, and related to this, is policy induced volatility. You're seeing more of this decoupling from
different parts of the world. Take more policy-induced volatility and less diversification from traditional
diversifiers, like fixed income. Frankly, just need to be more active in how we build our portfolios.

Number two.
As a retirement investor we have to think about market risk, we have to think about inflation risk, longevity
risk, sequencing risk. What's happened in the last couple of years is that “market risk component” has
become more challenging. We've needed to broaden out into other areas of the world, whether it's
Europe or Japan. We've also had to look to areas like liquid alternatives, and introduce things like private
markets and guaranteed income. So, what we’ve had to do is get a little bit more precise in how we
allocate to different asset building blocks to deliver retirement outcomes.

Which brings us to…number three.
There's a concept we use on the team simply called, “Grow, protect, spend.” Starting off we really want to
maximize growth, as you're nearing retirement we wanna start increasing protection, and then the goal in
retirement is to maximize your ability to spend. One of the big mistakes that we see people make is they
say, “I’ll do this later.” Active is not being just a passive bystander in your retirement planning, but it's
being active in how you think about savings, time horizon, and spending in retirement.

And finally.
I'm a lacrosse coach on the weekends. I coach two of my younger sons. Their lacrosse teams. We're
talking about nine and eleven year olds trying to teach them how to play lacrosse. For the international
listeners I'm sure you have no idea what lacrosse is. It's basically where Americans run around and hit
themselves with metal sticks. It is the national sport of Canada, though, so it's worth looking up.

To get more three plus one and learn everything you need to know and some things you don’t. Make sure
to follow us on LinkedIn and YouTube. See you next week.