BlackRock’s Rick Rieder on his career, the markets, and investing in the current environment
Aug 17, 2023
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Rick Rieder, Chief Investment Officer of Global Fixed Income for BlackRock, discusses his career, managing funds, the current macro environment, investing in AI and emerging markets, balancing short-term trading and long-term investing, and the importance of education.
The importance of risk management and focusing on generating returns for clients rather than being right in the market.
The adaptability and durability of the US economy, driven by technology and independent energy production.
Deep dives
Rick Reeder's Career and Early Lessons in Trading
Rick Reeder, Chief Investment Officer of Global Fixed Income for BlackRock, shares insights into his career and early lessons in trading. He discusses how he got his start in the markets and the importance of being open to opportunities. Reeder highlights the significance of risk management and the importance of generating returns for clients, rather than focusing solely on being right in the market.
Asset Allocation and Managing an Unconstrained Portfolio
Reeder explains the advantages of managing an unconstrained portfolio, allowing for flexibility and the ability to allocate investments based on where opportunities for alpha are present. He emphasizes the importance of reading extensively and having a strong team to assist in making informed investment decisions. Reeder also highlights the current attractive opportunities in a higher rate regime, cheap volatility, and the benefits of access to liquidity for effective asset allocation.
The Resilience of the US Economy and Key Changes in the Economy
Reeder discusses the durability of the US economy and its transition from a goods-oriented, cyclical economy to a services-oriented, consumption-focused economy. He emphasizes the adaptability and flexibility of the US economy, driven by technology and independent energy production. Reeder believes that the US economy is more durable than people give credit for and that the ability to create recessionary conditions requires significant negative impacts on different sectors.
Investing in AI and Balancing Short-Term Trading with Long-Term Investing
Reeder shares his views on investing in artificial intelligence (AI) and the challenges of incorporating AI-related investments into the portfolio. He highlights the importance of proprietary data sets and large language models for successful investments in the AI space. Reeder also discusses the balance between short-term trading and long-term investing, emphasizing the need for preparation and the ability to adapt to market conditions for successful alpha generation.
As the Chief Investment Officer of Global Fixed Income for BlackRock, Rick Rieder and his team are responsible for about $2.4 trillion of assets. In this episode of Goldman Sachs Exchanges: Great Investors, Rieder shares his views on the markets, the strength of the U.S. economy, and where he’s finding investment opportunities.
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