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Market take

Why we stay risk-on in the short term

Mar 25, 2024
BlackRock Global Chief Invest Strategist, Wei Li, discusses why they maintain a risk-on approach due to falling inflation, potential interest rate cuts, and strong corporate earnings. They delve into market trends, monetary policy decisions, and the impact on US and Japanese equities.
04:21

Episode guests

Podcast summary created with Snipd AI

Quick takeaways

  • Falling inflation and nearing interest rate cuts support a risk-on stance in the short term.
  • The Federal Reserve's positive forecasts and Bank of Japan's strategic rate hike bolster market sentiment towards equities.

Deep dives

Fed's Positive Impact on Risk Assets

The Federal Reserve's decision to project three interest rate hikes this year, alongside revising growth and inflation forecasts, has provided a positive outlook for risk assets. This move has endorsed a current optimistic market sentiment, signaling a favorable environment for investments such as US equities and thematic investments in artificial intelligence.

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