The global economy has entered a period of elevated volatility, and previous investing approaches won’t work anymore, BlackRock said.
A recession is imminent but central banks won’t be able to support markets this time by loosening policy, according to the money manager.
“Recession is foretold as central banks race to try to tame inflation. It’s the opposite of past recessions,” BlackRock strategists said.
A worldwide recession is just around the corner as central banks boost borrowing costs aggressively to tame inflation — and this time, it will ignite more market turbulence than ever before, according to BlackRock.
The global economy has already exited a four-decade era of stable growth and inflation to enter a period of heightened instability — and the new regime of increased unpredictability is here to stay, according to the world’s biggest asset manager.
That means policymakers will no longer be able to support markets as much as they did during past recessions, a team of BlackRock strategists led by vice chairman Philipp Hildebrand wrote in a report titled 2023 Global Outlook.
Plunging freight volumes don’t lie – despite the Brandon regime’s Happy Talk about “the strongest recovery ever,” the real economy, as opposed to the rigged Wall Street casino, is in free-fall.
Transportation Prices See “Sharpest Rate Of Contraction” In November t.co/Gs1Pck4ZLL
— zerohedge (@zerohedge) December 8, 2022