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Search resuls for: "BlackRock's Rick Rieder"


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Commodity Futures Trading Commission (CFTC) data published on Tuesday shows that speculators held the largest net short position in three-month 'SOFR' rate futures since September, and the biggest net short 10-year Treasuries futures position since 2018. While they trimmed their net short 2-year Treasuries futures position, it was only a reduction of around 5% from the record short a couple of weeks earlier. They trimmed their two-year futures net short to 656,575 contracts - two weeks prior they were net short 696,686 contracts, a record. chartA short position is essentially a wager that an asset's price will fall, and a long position is a bet it will rise. In bonds and interest rates, yields and implied rates fall when prices rise, and move up when prices fall.
BlackRock's Rick Rieder said the 60/40 portfolio should be flipped to 40% stocks, 60% bonds this year, and that international stocks should outperform U.S. equities. Rieder, chief investment officer for global fixed income at the world's largest asset manager, said he finds U.S. stocks less interesting relative to bonds. Both stocks and bonds were sharply lower, and the traditional benefits of one asset class hedging the other did not work. International stocks over U.S. equities International stocks could also outpace U.S. stock. I like some the global equities a lot more than the U.S." He also is looking to global fixed income markets.
BlackRock's Rick Rieder said the fixed income market should be less volatile in 2023 and investors should have a chance to recover a good bit of this year's losses. I think this is a generational point for fixed income, around where you can buy quality income without taking a lot of convexity, credit, illiquidity risk." But for stock investors, fixed income poses a challenge. "The marginal dollar has to go into those fixed income assets," he said. Rieder said fixed income investors still face risks, such as defaults and downgrades, but they should see positive returns next year.
BlackRock's Rick Rieder said bond yields have not yet hit their peak, and he continues to find the high rates available on short duration bonds and securitized assets to be very attractive. "We're buying all this short-dated high quality securities, investment grade assets, and we just keep buying them," said Rieder, chief investment officer of global fixed income. "I think he's got to draw the line on 'inflation is our objective'... I think he's got to be aggressive about that. "The stickiness of this inflation is pretty extraordinary...I think inflation is coming down," he said.
BlackRock's Rick Rieder expects the Fed to hike rates by three-quarters of a point Wednesday and says the Fed does not need to raise them by the full percentage point that some expect. The Fed is widely expected to announce the 75 basis point increase to the fed funds rate. The futures market Tuesday was pricing 16% odds that the Fed could even announce a 100 basis point hike Wednesday afternoon. A basis point equals 0.01 of a percentage point. After the 75 basis point hike Wednesday afternoon, "I think the odds of them going 75 one more time are probably 50/50 at this point," he said.
Whether or not you're ready, that moment has arrived in the form of the US presidential election. It's less than four months away, and Wall Street has already started turning its sights on what could transpire. Here are the 6 trades it recommends to profit from a Trump triumph — and 10 for a Biden blue wave. Read the full story: GOLDMAN SACHS: Wall Street is bracing for a historically wild stock market as the presidential election nears. Exclusive interviews with Gen Z day-traders throwing Wall Street for a loopReuters / Lucas JacksonA wave of retail investors has flooded the stock market with speculative bets and unexpected picks — and Wall Street is struggling to make sense of the trend.
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