Rick Rieder, BlackRock’s global chief investment officer of fixed income, recently shared the team’s latest investment moves.
In terms of equity allocation, they have moderately reduced their exposure to stocks. Technology remains a favored sector, supported by still-strong earnings growth. Outside of tech, however, finding other sectors worth investing in is becoming increasingly challenging.
On the broader market outlook, he noted that corporate earnings growth is expected to slow in the period ahead, though current asset valuations have already partially priced in this expectation. Meanwhile, Rieder remains confident in the high-yield bond market. He said that gradually rising yields are creating a good opportunity to improve the credit quality of portfolios. With that in mind, his team has made a sizable shift in its holdings, steadily moving some of its capital into investment-grade credit.
In terms of equity allocation, they have moderately reduced their exposure to stocks. Technology remains a favored sector, supported by still-strong earnings growth. Outside of tech, however, finding other sectors worth investing in is becoming increasingly challenging.
On the broader market outlook, he noted that corporate earnings growth is expected to slow in the period ahead, though current asset valuations have already partially priced in this expectation. Meanwhile, Rieder remains confident in the high-yield bond market. He said that gradually rising yields are creating a good opportunity to improve the credit quality of portfolios. With that in mind, his team has made a sizable shift in its holdings, steadily moving some of its capital into investment-grade credit.