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BlackRock Says Earnings Cuts Are Coming for Stocks

  • Nigel Bolton says profit downgrades to accelerate for 2023
  • Says higher rates to lift banks, supply crunch to boost energy

For stock traders grappling with a hawkish Federal Reserve and a looming recession, the next shoe to drop will be on corporate earnings, according to a BlackRock Inc. co-chief investment officer. 

“What we’re concerned about increasingly is earnings downgrades and we haven’t had that yet,” Nigel Bolton of BlackRock Fundamental Equities, which comprises active stock strategies, said in an interview. “The tone of management teams is already starting to change and we’re going to see pretty substantial reductions for 2023,” he said.