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☆ Big Tech goes nuclear: Amazon's pitch to use power plants shows the crucial role the energy source plays for AI
▼ + stars: | 2024-10-25 | by ( Dan Defrancesco | ) www.businessinsider.com time to read: +7 min

In today's big story, inside Amazon's internal pitch for turning to nuclear power to meet its growing energy needs . AdvertisementThat's led Big Tech to consider nuclear power to address its skyrocketing energy requirements. Nuclear power ticks that box better than other clean energy options like solar or wind. Nuclear power, meanwhile, is an industry in desperate need of some love , BI's Daniel Geiger and Ellen Thomas previously reported. From advertising platforms to AI tech companies, here's the startups to watch .

Persons: —, Jocko Willink, we've, Jenny Chang, Rodriguez, That's, Business Insider's Eugene Kim, Andy Jassy, it's, Sam Altman, Eugene, BI's Hasan Chowdhury, BI's Daniel Geiger, Ellen Thomas, Jim Burke, Vistra, Chelsea Jia Feng, Elon Musk, Jean Boivin, He's, Marc Benioff isn't, bashed, Miles Brundage, OpenAI, Emma Tucker's, Tucker, Mike Jeffries, SpaceX's, Dan DeFrancesco, Jordan Parker Erb, Hallam Bullock, Milan Sehmbi Organizations: Business, Service, Navy, Big Tech, Amazon, Microsoft, Google, Keystone, Hulton, Constellation Energy, Getty, EV, BlackRock Investment Institute, San Francisco, BI, AGI, Abercrombie, Fitch Locations: Fukushima, Pennsylvania, Arizona, New York, London

☆ A contested election that leads to weeks of uncertainty is a risk being overlooked by markets
▼ + stars: | 2024-10-24 | by ( Filip De Mott | ) www.businessinsider.com time to read: +3 min

Investors should beware of a contested US election, BlackRock's Jean Boivin told Bloomberg TV on Thursday. AdvertisementInvestors are dismissing the risk of a disputed US election, BlackRock Investment Institute head Jean Boivin told Bloomberg TV on Thursday. Recent battleground state polling shows a race too close to call with the election less than two weeks away. Other market strategists have echoed in recent weeks Boivin's concern over what an election dispute would mean for markets. Meanwhile, stocks rose during Trump's election dispute in 2020, likely due to signs that the COVID-19 pandemic was ending.

Persons: BlackRock's Jean Boivin, —, Jean Boivin, Boivin, Donald Trump, Kamala Harris, hasn't, Morgan Stanley, Brian Gardner, George W, Bush, Al Gore, Gardner Organizations: Bloomberg, Service, BlackRock Investment Institute, Trump, Republican Locations: Washington

☆ Invasion of the dogs: How surging canine ownership is reshaping cities and businesses
▼ + stars: | 2024-10-05 | by ( Juliana Kaplan | Eliza Relman | ) www.businessinsider.com time to read: +14 min

The Dog Bar — a sprawling dog venue in Saint Petersburg, Florida —has had at least six (human) proposals, and one wedding. AdvertisementVirtually all US pet owners now say their furry companions are part of their family — up from 86% of dog owners and 78% of cat owners in 2006. "The dog today is not the dog of 10 years ago," Bobby Boivin, the co-owner of Boo's Dog Bar in Sarasota, Florida, said. And so we do that once or twice a year at Dog Bar." After adopting two puppies, he fell in love with a dog bar in his neighborhood.

Persons: —, Saint Petersburg , Florida —, It's, Kendal Kulp, Bobby Boivin, Stephanie Marble, Marble, Kyle Cissel, aren't, Cissel, Tara Downs, she's, Fred Metzler, Metzler, Luke Silverman, Stephanie Chez, Silverman, Kevin Knutson, Knutson, Kulp, they'd, That's, that's Organizations: Service, National Association of Realtors, Wall Street, American Pet Products Association, IKEA Locations: Saint Petersburg , Florida, Asheville , North Carolina, Sarasota , Florida, Florida, Santa, Washington, DC, Colorado, St . Petersburg , Florida, Sephora, Minnesota, Wagbar

☆ BlackRock says inflation could be an unwelcome side effect of the AI-driven productivity boom
▼ + stars: | 2024-06-18 | by ( Filip De Mott | ) www.businessinsider.com time to read: +1 min

Capital spending on AI data centers could bring back inflation before boosting economy, BlackRock said. In the short term, AI winners will drive returns up for six to 12 months. Sign up to get the inside scoop on today’s biggest stories in markets, tech, and business — delivered daily. download the app Email address Sign up By clicking “Sign Up”, you accept our Terms of Service and Privacy Policy . "Capital spending on AI data centers has boomed since last year's ChatGPT moment," analysts led by Jean Boivin wrote on Monday.

Persons: —, Jean Boivin Organizations: BlackRock, Service, Business

☆ Yen on guard ahead of BOJ; euro stutters with weekly loss in sight
▼ + stars: | 2024-06-14 | by ( ) www.cnbc.com time to read: +4 min

The yen was on the defensive on Friday ahead of a policy decision from the Bank of Japan that could see it further reduce its massive monetary stimulus, while elsewhere the euro, mired in political turmoil, was headed for a weekly loss. The yen was on the defensive on Friday ahead of a policy decision from the Bank of Japan that could see it further reduce its massive monetary stimulus, while elsewhere the euro, mired in political turmoil, was headed for a weekly loss. The yen was a touch weaker at 157.08 per dollar and on track for a marginal weekly loss of about 0.2%, though moves were largely subdued ahead of the conclusion of the BOJ's two-day monetary policy meeting later on Friday. The euro was little changed at $1.0737, and was poised for a weekly loss of roughly 0.6%. Against the British pound, the euro was last languishing near a 22-month low and staring at a weekly decline of 0.9%.

Persons: Ray Attrill, Wall, Powell, Jean Boivin, Emmanuel Macron's, Macron, France's, Erik, Jan van Harn Organizations: Bank of, National Australia Bank, New Zealand, Federal Reserve, BlackRock Investment Institute, Fed, Aussie, Rabobank Locations: Bank of Japan, BlackRock

☆ Hedge funds are selling stocks at the fastest pace in three months and stepping up short bets
▼ + stars: | 2024-04-09 | by ( Yun Li | ) www.cnbc.com time to read: +2 min

Hedge funds are dumping stocks at the fastest pace in three months as what's often called " the smart money " stepped up bearish wagers against equities amid the recent pullback. The professionals sold global stocks on a net basis for a second straight week last week, driven almost entirely by short sales, according to Goldman Sachs' prime brokerage data. It marked the biggest selling week for hedge funds since mid-January, the data showed. Its hedge fund clients sold stocks for a fifth consecutive week last week, exiting shares across small-, mid- and large-cap companies. The S & P 500 declined nearly 1%, its biggest weekly loss since early January, although the equity benchmark is still only 1.7% below its record high.

Persons: Goldman Sachs, David Bahnsen, Goldman, Jean Boivin, — CNBC's Michael Bloom Organizations: Bank of, Dow, Bahnsen Group, P Retail, Traders, Fed, BlackRock Investment Institute Locations: U.S

☆ Sports investing has taken off, but the biggest prize in the industry remains almost untouchable
▼ + stars: | 2024-01-30 | by ( Dan Defrancesco | ) www.businessinsider.com time to read: +8 min

NEW LOOK Sign up to get the inside scoop on today’s biggest stories in markets, tech, and business — delivered daily. 3 things in marketsJim Esposito, Goldman Sachs' head of global markets and banking, is set to retire from the bank, the firm said Monday. Jim Esposito is leaving Goldman Sachs after nearly 30 years. While he didn't share his next move, he told peers he'd "bleed Goldman Sachs forever." Goldman Sachs says rate cuts need to be on the menu in March.

Persons: —, Brooks Koepka, Rory McIlroy, Keyur Khamar, Marc Lasry, Steve Cohen, Aaron Mok, LeBron James, — Arthur Blank, Gerry Cardinale, Goldman Sachs, who's, Lasry, Cohen, Point72, it's, Patrick Smith, Peacock, David Tepper, Jim Esposito, We've, he'd, Jean Boivin, David Mericle, NurPhoto, Getty, Javier Zayas, Kevin Winter, Tyler Le, Critics, Dan DeFrancesco, Hallam Bullock, Jordan Parker Erb Organizations: Service, Costco, Getty, PGA Tour, Fenway Sports Group, NFL's Atlanta Falcons, Capital Group, Milwaukee Bucks, New York Mets, NFL, Denver Broncos, Washington, Washington Post, Kansas City Chiefs, San Francisco 49ers, Carolina Panthers, BlackRock, Spotify, Apple, Google, Entertainment, Netflix, Studios, HBO, Disney, Walmart, Microsoft, Business Locations: Vegas, BlackRock, New York, London

☆ BlackRock upgrades U.S. stocks to overweight, sees momentum carry on for the next 6 to 12 months
▼ + stars: | 2024-01-29 | by ( Yun Li | ) www.cnbc.com time to read: +2 min

BlackRock, the world's largest asset manager, on Monday upgraded its outlook for U.S. stocks to overweight, seeing upward momentum carry on as inflation eases. "So we upgrade broad U.S. stocks — our index level view plus AI theme preference — to overweight on a tactical horizon of six to 12 months." While the firm sees inflation falling near the Fed's 2% target, it expects prices to go up toward 3% next year. "We agree with markets that inflation will fall near 2% this year, helping the upward momentum extend into the year. The firm said wage growth in the U.S. is still running too hot for services inflation to slow enough to keep core inflation near 2%.

Persons: Jean Boivin, BlackRock Organizations: BlackRock, BlackRock Investment Institute, Tech, Gross, Investors, Microsoft Locations: BlackRock, U.S

☆ 7 stocks ready to rally by 118% to 288%, according to Wall Street's top analysts as compiled by a financial data firm
▼ + stars: | 2024-01-17 | by ( Laila Maidan | ) www.businessinsider.com time to read: +2 min

If you're looking at this year's economic outlook to inform your investing decisions, you may want to rethink that strategy. Investors like Bryant VanCronkhite, a senior portfolio manager at Allspring , agree that the environment is ripe for active management. The days of overpriced equities that benefited from low interest rates will soon hit a brick wall. One option is to take a cue from Wall Street's top analysts — and TipRanks, a financial data firm, has analyzed reams of data to compile useful lists. Below is a set of seven mid-cap stocks that analysts have given "strong buy" ratings with high upside.

Persons: It's, Long, Goldman Sachs, Jean Boivin, Bryant, — Organizations: Business, Bank of, BlackRock Investment Institute, Allspring, NYSE, Nasdaq

☆ Don't count on the Fed slashing rates given the inflation 'rollercoaster' risk, warns BlackRock
▼ + stars: | 2024-01-09 | by ( Anil Varma | ) www.businessinsider.com time to read: +3 min

download the appSign up to get the inside scoop on today’s biggest stories in markets, tech, and business — delivered daily. Read previewInvestors positioning for sharp interest-rate cuts by the Federal Reserve this year may be disappointed, according to BlackRock. Increased geopolitical risks will also fuel price pressures in the coming years, according to BlackRock, reducing room for the Fed to ease monetary policy. "We think the Fed may not be able to deliver the rate cuts markets expect, even with growth moderating," analysts led by Jean Boivin wrote. "We think that means inflation is set to rollercoaster back up near 3% in 2025 as the goods price drag fades.

Persons: —, Jean Boivin Organizations: Service, Federal Reserve, Business, Investors, UBS, Fed, NatWest Locations: BlackRock

☆ BlackRock Investment Institute raises rating of long-dated US Treasuries
▼ + stars: | 2023-10-16 | by ( ) www.reuters.com time to read: 1 min

A bronze seal for the Department of the Treasury is shown at the U.S. Treasury building in Washington, U.S., January 20, 2023. REUTERS/Kevin Lamarque/File Photo Acquire Licensing RightsOct 16 (Reuters) - BlackRock Investment Institute on Monday raised the rating of long-dated U.S. Treasuries to "neutral" from "underweight" as it sees yields approaching a peak. "We now see about equal odds that long-term yields swing in either direction," said Jean Boivin, head of BlackRock Investment Institute. BlackRock Investment Institute, an arm of U.S.-based investment firm BlackRock that provides proprietary investment research, is "overweight" on euro area and UK bonds as it sees more rate cuts than the market in these regions. Reporting by Susan Mathew in Bengaluru; Editing by Shounak DasguptaOur Standards: The Thomson Reuters Trust Principles.

Persons: Kevin Lamarque, Jean Boivin, Susan Mathew, Shounak Dasgupta Organizations: Department of, U.S . Treasury, REUTERS, BlackRock Investment, BlackRock Investment Institute, Thomson Locations: Washington , U.S, U.S, BlackRock, Bengaluru

☆ Investors can get a 5% yield in these assets and skip the bond market volatility
▼ + stars: | 2023-10-06 | by ( Michelle Fox | ) www.cnbc.com time to read: +4 min

Investing in money market funds The interest in money market funds began to heat up when the Federal Reserve started raising interest rates last year, Antoniewicz said. Some $64.13 billion flowed into money market funds the week ended Wednesday, bringing total net assets to a record $5.71 trillion, per the Investment Company Institute . Net assets also hit a record within retail money market funds, reaching $2.16 billion, the ICI said. The annualized 7-day yield yield on the Crane 100 list of the 100 largest taxable money funds is currently 5.18%. "So if you have stability in a money market fund and an equal or higher yield, why would anyone consider leaving a money market fund to go longer term and have the volatility?"

Persons: Peter Crane, Jean Boivin, Shelly Antoniewicz, Antoniewicz, Barry Glassman, Glassman, I'm Organizations: Crane, Treasury, Federal Reserve, BlackRock Investment Institute, Investment Company Institute, ICI, Data, Wealth Services

☆ Christie’s cancels auction of jewelry linked to Nazi-era fortune
▼ + stars: | 2023-09-05 | by ( Christy Choi | ) edition.cnn.com time to read: +3 min

CNN —The sale of over 400 pieces of jewelry once owned by late art collector Heidi Horten broke records at a series of auctions earlier this year. But amid ongoing criticism from Jewish advocacy groups and human rights organizations over the source of the Austrian billionaire’s wealth, Christie’s auction house announced Thursday that it has canceled the final part of the controversial sale. (Christie’s had initially predicted that Horten’s entire collection, featuring over 700 jewels, would sell for over $150 million.) Prior to May’s sales, the American Jewish Committee had called for the auction to be put on hold until “a serious effort” was made to investigate the Hortens’ wealth. The Heidi Horten Collection did not respond to CNN’s request for comment.

Persons: Heidi Horten, Helmut, ” Christie’s, ”, ” Anthea Peers, Christie’s, Van, Helmut Horten, Forbes Organizations: CNN, American Jewish Committee, Twitter, Washington D.C, ” Locations: Austrian, Nazi Germany, German, Europe, East, Africa, Geneva, Switzerland, Nazi, Washington, Vienna, Austria

☆ Cedar Key: Hurricane Idalia turned a 'haven for artists' into a flooded wreck
▼ + stars: | 2023-08-31 | by ( Eric Levenson | ) edition.cnn.com time to read: +13 min

Thomas Simonetti/The Washington Post/Getty ImagesA view of the flooding in Cedar Key, Florida, on August 30, 2023. Julio Cesar Chavez/ReutersPhotos on the Cedar Key Fire Rescue Facebook account showing some of the early destruction. And unlike Key West, Cedar Key has avoided high-end commercial development along its shores and remains a low-key spot. What Idalia did to Cedar KeyA vehicle was partially submerged after the arrival of Hurricane Idalia in Cedar Key on Wednesday. “Everything is flooded,” Shely Boivin, the manager of a beachfront motel in Cedar Key, told CNN.

Persons: CNN —, ”, Idalia, ” Michael Bobbitt, CNN’s John Berman, Thomas Simonetti, Julio Cesar Chavez, Bobbitt, “, John Muir, ” Muir, Leslie Sturmer, Julio, Cesar Chavez, Reuters Levy, Mayor Heath Davis, “ We’re, ” Bobbitt, ” Heather Greenwood, CNN’s Carlos Suarez, Sean Rayford, Cheney Orr, Reuters Jewell Baggett, Cristobal Herrera, Ulashkevich, EFE, Jack Lemburg, Richard Burkhart, Douglas R, Clifford, Zuma Press Donnye Franklin, Joe Raedle, Rebecca Blackwell, Ron DeSantis, Savannah Alderman Nick Palumbo, Ken Kruse, Hurricane Idalia, Eva Marie Uzcategui, Christian Monterrosa, Stephen M, Dowell, Reagan Ortagus, Tyler, Bob Self, NOAA Ana Iris Aguiar, Alexandre Meneghini, Marco Bello, Adrees Latif, Samson, Victor Cassano's, Chris O'Meara, Yamil Lage, Sharon Walsh, Doug Engle, Christine Willis, Andrew West, Shely Boivin, ” Boivin, ‘, John MacDonald Organizations: CNN, Rescue, Washington Post, Key, USA’s, University of Florida Institute of Food, Agricultural Sciences, WUFT, Reuters, Mayor, Tampa Bay Times, ZUMA Press, Press, Angels Episcopal Church, Savannah Morning, USA, Network Rescue, Zuma Press, AP Florida Gov, Savannah, Bloomberg, Getty, Duke, Orlando Sentinel, Florida Times, Union, AP, Reuters Pike Electric, Idalia, Southwest Airlines, Tampa International Airport, Reuters Home Depot, Reuters Fort Myers, Emergency Locations: Key , Florida, Gulf of Mexico, Cedar, Mexico, Dock, Horseshoe Beach , Florida, Bend, Tampa, Perry , Florida, Keaton Beach , Florida, Horseshoe Beach, Madison , Florida, Steinhatchee , Florida, Samarra, St, Savannah , Georgia, Savannah, Steinhatchee, Crystal River , Florida, Perry, Crystal, Tarpon Springs , Florida, Mayo , Florida, Tarpon Springs, Myers, Hurricane, Gainesville , Florida, Sumterville , Florida, Johns County , Florida, Florida, NOAA, La Coloma, Cuba, Clearwater , Florida, Playa Majana, Suwannee , Florida, Batabanó, AFP, Guanimar, Ocala , Florida, USA, Reuters Fort Myers Beach, Levy

☆ 3,500-year-old ancient Egyptian mummification balm aroma recreated
▼ + stars: | 2023-08-31 | by ( Ashley Strickland | ) edition.cnn.com time to read: +8 min

CNN —Scientists have decoded an ancient aroma by identifying the ingredients used in Egyptian mummification balms — and resurrected the scent. The exact recipes used in the mummification have long been debated because ancient Egyptian texts don’t name precise ingredients. The new findings suggest that the relatively complex balms used in Senetnay’s preservation may have been the beginning of a trend of more elaborate ones used later on. Dammar resin, an ingredient used in embalming, appears next to a bottle of the recreated ancient scent. “The scent of eternal life” will be part of an ancient Egyptian exhibit at the Danish museum that opens in October.

Persons: ”, Barbara Huber, ” Huber, Pharaoh Amenhotep II, Pharaoh Thutmose III, Amenhotep II, Senetnay, Christian Tepper, Howard Carter, Carter, Pharaoh, Nicole Boivin, Carole Calvez, dammar, it’s, ” Boivin, Dammar, Sofia Collette Ehrich, Huber, Barbara Huber “, “ Organizations: CNN —, Moesgaard Museum, Max Planck Institute of Geoanthropology, Max Planck Institute, Geoanthropology Locations: Denmark, Egypt’s Valley, Germany, “, Hannover, India, Southeast Asia, Europe, Saqqara

☆ Froome left out of Israel-Premier Tech's Tour de France team
▼ + stars: | 2023-06-23 | by ( ) www.reuters.com time to read: +1 min

[1/2] Cycling - Tour de France - Stage 12 - Briancon to Alpe d'Huez - France - July 14, 2022 Israel-Premier Tech's Chris Froome is seen after stage 12 Pool via REUTERS/Marco Bertorello/File PhotoJune 23 (Reuters) - Four-times winner Chris Froome was left out of Israel-Premier Tech's (IPT) squad for this year's Tour de France on Friday but vowed to return to cycling's premier road race next year. The 38-year-old Froome said in a recent interview that competing at this year's Tour was his "ultimate goal" after his hopes at last year's race were derailed by a positive COVID-19 test. "It was a tough decision to select our Tour de France team this year but we feel we selected eight riders best suited to fulfilling our performance objectives," said IPT General Manager Kjell Carlstrom. Froome told Global Cycling Network that he was disappointed with the decision. "I respect the team's decision and will take some time before refocusing on objectives later in the season and returning to the Tour de France in 2024."

Persons: Alpe, Chris Froome, Marco Bertorello, Tech's, Froome, IPT, Guillaume Boivin, Simon Clarke, Hugo Houle, Krists Neilands, Nick Schultz, Corbin Strong, Dylan Teuns, Michael Woods, Kjell Carlstrom, Simon Jennings, Toby Davis Organizations: de, de France, Global Cycling Network, Tour de France, Thomson Locations: France, Israel, Bilbao, Bengaluru

At the height of the tightening cycle in September last year, eight central banks hiked rates by a cumulative 550 bps. Year-to-date, G10 central banks have delivered 21 rate hikes and tightened by a total of 725 bps. That compares with 54 rate hikes in the whole of 2022 and 2,700 bps of rate hikes. Developed markets interest ratesMeanwhile, emerging markets were slightly further advance in the cycle with some central banks changing tack to easing mode. That compares with 11 meetings in April, where two central banks delivered a total of 50 bps.

Persons: Jean Boivin, Karin Strohecker, Vincent Flasseur, Hugh Lawson Organizations: European Central Bank, Bank of England, Federal Reserve, BlackRock Investment Institute, UN, Thomson Locations: Australia, New Zealand, Norway, BlackRock, Israel, South Africa, Thailand, Malaysia, Hungary

☆ Mega-cap tech dominance in the S&P 500 is obscuring investor bets that the US may already be in a recession
▼ + stars: | 2023-05-31 | by ( Carla Mozée | ) www.businessinsider.com time to read: +3 min

The jump in S&P 500's big tech stocks is masking concerns among investors that the US is already in recession, BlackRock Investment Institute says. The US has logged back-to-back quarters of contraction in gross domestic income. The S&P 500 has tacked on about 9% this year. Last week, the government said gross domestic income declined 2.3% in the first quarter of 2023 on a seasonally adjusted annual basis. Its aggressive series of hikes last year contributed to driving the S&P 500 down more than 18% last year.

Persons: —, Jean Boivin Organizations: BlackRock Investment Institute, US, Service, Apple, Nvidia, Microsoft, Fed Locations: BlackRock, Germany, Europe's, U.S

CNN —Hundreds of jewels once owned by late Austrian billionaire Heidi Horten have fetched a combined 176 million Swiss francs ($196 million) to become the most expensive private jewelry collection ever to appear at auction. Heidi Horten pictured wearing the Briollete of India necklace, which sold for 6.3 million Swiss francs ($7 million). The most valuable lot, a ruby and diamond Cartier ring that is “pigeon blood” in color, fetched just over 13 million Swiss francs ($14.5 million), despite Christie’s expecting bids as high as 18 million Swiss francs ($20 million). A 90-carat “Briolette of India” diamond necklace by jeweler Harry Winston also came in below estimate, selling for 6.3 million Swiss francs ($7 million). courtesy Christie'sElsewhere, however, a Bulgari diamond ring more than doubled its high estimate to fetch 9.1 million Swiss francs ($10.1 million).

☆ You can now make more money holding cash than a traditional stock-bond portfolio
▼ + stars: | 2023-02-28 | by ( Morgan Chittum | ) www.businessinsider.com time to read: +2 min

Investors aren't making as much money on the classic 60/40 strategy as holding short-term bonds. The mix of US equities and debt yields 5.07%, while yields on the six-month US Treasury hit 5.16% on Tuesday. Cash holdings haven't paid out more than the 60/40 portfolio since 2001. Meanwhile, returns on short-term Treasury bills are also sensitive to increases in the fed funds rate and climb alongside the benchmark. In 2023, the 60/40 strategy has given investors 2.7% after tumbling 17% last year, its biggest decline since 2008.

☆ Investors should pile into short-term bonds as markets wake up to the reality that the Fed is going to stay aggressive, BlackRock says
▼ + stars: | 2023-02-24 | by ( Morgan Chittum | ) www.businessinsider.com time to read: +2 min

Investors may want to look to short-term bonds as stocks sell off amid fears of a hawkish Fed, per BlackRock. US 2-year treasury yields jumped near 15-year highs this week as equities retreated. Traders are assessing hotter-than-expected Core PCE data released on Friday. US 2-year Treasury yield jumped near 15-year highs of 4.9% this week as investors placed bets on more rate hikes by the Fed. Core PCE increased 0.6% from a month earlier, the most since June.

☆ BlackRock shares a 2-part stock-trading strategy for an expected downturn in stocks as the Fed forces the economy into a recession with higher rates
▼ + stars: | 2023-02-22 | by ( William Edwards | ) www.businessinsider.com time to read: +4 min

With inflation still elevated, a strong economy means the Fed will push on the gas pedal more. To avoid the resulting downturn, invest in short-term Treasurys and emerging market stocks, the firm says. Eventually, that will weigh on economic growth and hurt stocks, BlackRock said in a commentary on Tuesday. The Vanguard Short-Term Treasury ETF (VGSH) and the Schwab Short-Term U.S. Treasury ETF (SCHO) are two vehicles for gaining exposure to short-term government bonds. The iShares MSCI Emerging Markets ETF (EEM) and the SPDR Portfolio Emerging Markets ETF (SPEM) offer exposure to emerging-market stocks.

It's time to rethink bonds, according to the BlackRock Investment Institute, which said "the lure of fixed income is strong" right now. The research arm of BlackRock , one of the world's largest asset managers, urged investors to favor investment-grade bonds, short-term government debt and inflation-linked bonds amid recession fears and higher-for-longer inflation. "Higher yields are a gift to investors who have long been starved for income. "Investors also will increasingly ask for more compensation to hold long-term government bonds — or term premium — amid high debt levels, rising supply and rising inflation." The BlackRock Investment Institute has raised its overweight position on investment-grade credit, but remains underweight on long-term government bonds.

☆ BLACKROCK: Here's how to survive a market that's underestimating the damage from a recession, and profit on the other side
▼ + stars: | 2022-12-02 | by ( Marley Jay | ) www.businessinsider.com time to read: +4 min

Stock market investors haven't priced in a recession yet, according to BlackRock. The firm says investors are too hopeful about future rate cuts and aren't ready for falling profits. The firm's playbook lays out a multi-asset strategy for before and after an expected recession. The other — based on BlackRock's view that a recession is coming — is how much "economic damage" is reflected in asset prices. "We find that earnings expectations don't yet price in even a mild recession," according to a recent report from the BlackRock Investment Institute.

☆ The global stock market rally could be about to meet recession reality
▼ + stars: | 2022-11-17 | by ( Elliot Smith | ) www.cnbc.com time to read: +3 min

Specialist traders work inside a post on the floor of the New York Stock Exchange (NYSE) in New York City, November 10, 2022. Brendan Mcdermid | Reuterswatch now"We think those hopes will be dashed again as the Fed pushes ahead with policy overtightening. With the S&P 500 jumping 13% from its October low, stocks are even further from pricing in the recession — and earnings downgrades — we see ahead." While consensus expects earnings growth to fall from 10% at the start of 2022 to just over 4% in 2023, the world's largest investment manager expects zero growth, noting that third-quarter annual earnings growth would already be in negative territory without the huge windfalls seen in the energy sector. watch nowDownbeat viewLast Thursday's Wall Street rally was the 15th-largest single-day gain for the S&P 500 since the mid-1960s, according to Capital Economics.

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