Alternative Investments: BlackRock Warns on Global Growth

Weakness in Asia sits at the top of the asset manager’s concerns

Global economic growth sits atop a list of concerns from BlackRock. On Tuesday, the alternative asset manager said it has shifted toward defensive Asian stocks. A report indicates that the company has turned to sectors like telecommunications in China. The group released its projections for next year in a 2020 report on the region.

Among the report’s highlights, the firm said that getting defensive was an “overarching theme” for the asset manager. It projected weaker global economic growth, lackluster returns in 2020, and greater geopolitical uncertainty. It listed the 2020 presidential election, trade worries, and the fact that the market isn’t priced for a selloff as major concerns.

BlackRock and Global Economic Growth

Meanwhile, the asset manager expects that the U.S. dollar will get stronger in the year ahead. However, it also expects slower U.S. growth and a potential flight to safe-haven assets. The company has cut back on Asian countries like Indonesia due to its exposure to U.S. debt. It projected some opportunities in places like Thailand and Taiwan.

The firm also cut its exposure to the Asian financial sector. Finally, it said that this sector has “vulnerabilities [that] would be most evident if the global economy downshifts meaningfully.”

Related: Baker McKenzie: Prepare for a Downturn in M&A

Free Industry News

Subscribe to our free newsletter for updates and news about alternatives investments.

  • This field is for validation purposes and should be left unchanged.


Latest Alternative Investment News
FinTech: Klarna’s Valuation Plunges To $6.5B In Talks To Raise $650M (WSJ)
July 1, 2022     FinTech, Latest News, News

Klarna, the Swedish fintech known for its buy-now-pay-later (BNPL) financial product, is negotiating to raise $650 million at a valuation of $6.5 billion, which is a very sharp comedown from…
Venture Capital: OppZo, Which Funds Small Businesses Having Government Contracts, Raises $260M
July 1, 2022     News, Venture Capital

Fintech OppZo brings together investors and small businesses that need working capital loans for their government-facing businesses. Typically located in economically stressed areas of the country, these businesses represent an…
Alternative Investments/Digital: Jacobi To Launch Europe’s First Bitcoin ETF This Month

The Jacobi Bitcoin ETF, from Jacobi Asset Management, will have a number of firsts to its credit when it starts trading this month. It will be the first exchange-traded equity…
Artificial Intelligence: John Deere’s Advances in AI Powered Agriculture Machinery
July 1, 2022     Artificial Intelligence, News

John Deere (NYSE: DE) has achieved leadership in automated machinery powered by Artificial Intelligence (AI). The self-driving tractor pictured above was revealed in CES 2022 and has six pairs of…