LONDON (Reuters) – BlackRock Investment Institute (BII) said on Tuesday it had lowered its weighting on euro zone and UK government bonds, as well as US inflation-indexed debt, from “overweight”. ” to “neutral”.
The research and analysis arm of Blackrock, the world’s largest asset manager, indicates in its outlook note for 2024 that investors will face “slower growth, high inflation, high interest rates and greater volatility”.
BII says it has a broad preference for emerging market assets, including India and Mexico, over developed markets and in developed markets it favors Japanese stocks.
Global markets have rallied on signs of easing inflationary pressures and hope that central banks will cut interest rates next year. BII, however, estimates that inflation will remain close to 3%, noting that this is “one of its strongest convictions from a strategic horizon perspective.”
(Reporting by Karin Strohecker, by Claude Chendjou, editing by Kate Entringer)
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