BlackRock Warns Against Dip Buying as High-Volatility Era Dawns
- Strategists are underweight government bonds, DM equities
- Prepare to be nimble amid sticky inflation, economic swings
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There’s no quick recovery in sight for stocks and bonds that are having their worst year in at least three decades, according to strategists at BlackRock Inc.
Russia’s grinding war in Ukraine and supply bottlenecks from labor shortages will keep the pace of price growth elevated. Central banks will tighten policy until the economic pain forces them to shift direction and live with inflation. Constrained by the “hyper-politicization of everything,” policy makers will struggle to tackle the fallout.