BlackRock on DM equities - earnings expectations too optimistic, economic damage ahead

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BlackRock on DM equities -  earnings expectations too optimistic, economic damage ahead

BlackRock Investment Institute have a very downbeat outlook on global stock markets.

On the US:

• We are underweight. Financial cracks are emerging from Fed rate hikes. We don't think earnings expectations reflect the recession we see ahead.

On Europe:

• We are underweight. The impact of higher interest rates and elevated inflation pose a challenge for earnings, even as the energy shock fades.

On the UK:

• We are underweight. Earnings expectations don't fully reflect the economic damage we see ahead.

I posted earlier on the firm's CEO's outlook, he sees as many as 4 more Federal Open Market Committee (FOMC) rate hikes to come:

• BlackRock CEO Fink says inflation remains sticky, expects at least two more Fed rate hikes

                This article was written by Eamonn Sheridan at www.forexlive.com.

Source: BlackRock on DM equities -  earnings expectations too optimistic, economic damage ahead

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