BlackRock’s Li Is Overweight on European Equities

The transcript discusses the European Central Bank's (ECB) pandemic emergency purchase program and the need for continued asset purchases due to medium-term inflation forecasts. It highlights the tactical shift in global economic momentum from the US to Europe and Japan, leading to an upgrade in European equities. The discussion also touches on the cyclical nature of this investment strategy and the structural challenges faced by European equity markets, emphasizing the importance of vaccination progress in the economic restart.

What is the main reason for the ECB to consider increasing the asset purchase program?

• To support emerging market equities

• To counteract the US economic growth

• Due to medium-term inflation forecasts being below target

• To match the Federal Reserve's policies

Which regions are seeing a shift in growth momentum according to the global restart story?

• US and China

• Europe and Japan

• Africa and South America

• Australia and India

What is the current stance on European equities in the context of the global economic restart?

• Underweight

• Neutral

• Overweight

• Short

What type of play is the current European equity strategy considered to be?

• Growth play

• Defensive play

• Cyclical tactical play

• Long-term strategic play

What needs to be addressed for a long-term preference for European equities?

• Structural challenges

• Currency fluctuations

• Political instability

• Interest rate hikes