BlackRock Turns Defensive, Tilts to Safe Havens in Second Half of 2019

The video discusses BlackRock's outlook on global markets, influenced by US protectionism and central banks' dovish policies. It highlights the importance of reducing risks, raising cash, and investing in government bonds to offset potential equity drawdowns. The discussion also covers portfolio structuring with a focus on US equities and European assets, considering lower recession risks and market expectations.

What are the two main factors that led BlackRock to adjust their investment strategy?

• Protectionist push by the US and dovish central banks

• Rising inflation and increasing interest rates

• Technological advancements and market volatility

• Global political stability and economic growth

Why does BlackRock consider government bonds important in their allocation strategy?

• They are unaffected by market conditions

• They are risk-free investments

• They act as a hedge against equity drawdowns

• They offer high returns

How does BlackRock plan to adjust their cash holdings?

• Marginally increase cash to offset risks

• Convert all cash to equities

• Significantly increase cash holdings

• Maintain current cash levels

What is BlackRock's view on recession risks and their impact on portfolio structuring?

• Recession risks are low, allowing for decent allocations to risk assets

• Recession risks are irrelevant to portfolio structuring

• Recession risks are high, requiring conservative investments

• Recession risks are unpredictable, leading to a wait-and-see approach

Which market does BlackRock see as having excessive expectations?

• Emerging markets

• European markets

• US markets

• Asian markets