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

December 6, 2019

SIFMA: US Economy Will Expand in 2020 But at a Moderate Pace

SIFMA: US Economy Will Expand in 2020 But at a Moderate Pace

Latest Alternative Investment News

Steve Cohen Looks to Boost Stake As MLB Team Owner
December 7, 2019     Hedge Funds, Latest News, News

As uber-rich private equity and hedge fund billionaires are homing in on sports franchises, Steve Cohen is negotiating to up his current 8% stake in the Mets to 80%. Cohen…

LPL Wades Into Pricing Wars; Axes Platform Fees on ETFs for Advisors
December 6, 2019     News

LPL Financial launched a no-transaction-fee, ETF network where advisors can trade ETF’s for free in their advisory accounts. LPL Financial partnered with three leading ETF providers – State Street Global…

Goldman’s Private Equity Clients All Fear a Recession
December 6, 2019     News, Private Equity

Goldman Sachs clients are hunkering down for a recession, but are still looking for multi-billion dollar investment opportunities. Speaking on a Bloomberg interview, Alison Mass, Goldman Sachs Group Inc.’s chairman…

SIFMA: US Economy Will Expand in 2020 But at a Moderate Pace
December 6, 2019     Headlines, Special Reports

SIFMA’s bi-annual survey compiles economic focus from its Roundtable members, the chief US economists of over 20 global and regional financial institutions. SIFMA’s 2019 End-Year US Economic Survey forecasts US…