11 January 2023 | Other

BlackRock warns that markets may underestimate the threat of high inflation

BlackRock analysts suppose that the U.S. stock market will have another unstable year because investors overlook the threat of increased interest rates and consistently high inflation. 

In the research note of BlackRock they indicated that in 2023, a further increase in inflation is expected. Analysts also say that the Fed is less likely decrease the interest rates even in case of a recession in the U.S.   

Forecasts of BlackRock are pessimistic for markets. To them, it seems unlikely that central bank leaders will reduce interest rates in case of an economic slump.

Analytics report that this is the reason why the ‘buying the dip’ tactic doesn't work in a situation of strong macroeconomic volatility. The new tactic requires the constant assessment of the economic damage inflicted by central banks.  



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