High-for-longer shapes strategic view

Nov 18, 2024

Inflation pressures are persisting, reshaping investment strategies in a high-interest environment. Experts discuss adapting to changing markets, with private equity and real estate cooling down. There’s an intriguing focus on infrastructure opportunities and a tactical approach to US and emerging market equities. The evolving landscape post-elections adds another layer of complexity, prompting a reevaluation of asset class trends. Join in to explore how these dynamics could impact your investment choices!

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INSIGHT

Supply-Driven World and Investment Strategy

BlackRock is adapting its strategic views to a world shaped by supply and structural forces.
They expect persistent inflationary pressures and higher-for-longer interest rates.

INSIGHT

Impact of Inflation on Interest Rates and Asset Valuations

Stubborn inflation will force central banks to maintain high interest rates for an extended period.
This has cooled private equity and real estate valuations, creating opportunities in infrastructure.

ADVICE

Consider Megaforces in Investment Strategies

Consider megaforces like digital disruption and AI when evaluating investments.
These structural shifts significantly impact returns, particularly in infrastructure.

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We see a world shaped by supply, with structural forces set to keep inflation pressures persistent and interest rates high for longer. Devan Nathwani, Portfolio Strategist at the BlackRock Investment Institute, highlights how we are evolving our strategic views as a result.

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