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.


Alt Insights

January 16, 2020

ESG: Lately-turned Tesla Bull Jim Cramer Adds Fink To The Mix

ESG: Lately-turned Tesla Bull Jim Cramer Adds Fink To The Mix
Shape

Latest Alternative Investment News

Digital Assets: Ray Dalio – Cash is trash; BTC is Untouchable; Libra Maybe; Stocks are Good; Gold is Best
January 24, 2020     Digital Assets, News

Ray Dalio, a long time bitcoin sceptic, again panned the cryptocurrency at Davos. Cash is trash; BTC is Untouchable; Libra Maybe; Stocks are good; Gold is Best, he said.

American Banking Association: M&A Expectations for 2020
January 24, 2020     Community Banking, Latest News, News

The American Banking Association has released its outlook for merger and acquisition activity in the banking sector in 2020. The ABA finds that the forces contributing to the consolidation of…

Private Equity: BGH Capital Makes Better Offer For Village Roadshow
January 24, 2020     News, Private Equity

Private equity firm BGH Capital has thrown its hat into the ring to acquire Village Roadshow. On Friday, BGH made an unsolicited counter-offer of $4 per share for Village. A…

Digital Assets: Square Granted US Patent For New Currency Exchange Network Including Cryptos
January 24, 2020     Digital Assets, News

Payments processor Square won the US patent number 10,540,639 titled “cryptocurrency payment network” for a new network that could seamlessly process crypto-to-fiat transactions and the reverse. The transactions would occur…