Homepage / Investment / There is no reason to cut and run in this market: BlackRock investment chief
Les Gambling establishments en Ligne en France 2024 200% Reward + 300 Free Rotates LevelUp Internet casino Melbourne En İyi ve Güvenilir Casino Siteleri Canlı Casino Siteleri 2023 Listesi En İyi ve Güvenilir Casino Siteleri Canlı Casino Siteleri 2023 Listesi Le meilleur casino en ligne franзais Extra Casino avec le dйpфt minimal le in addition bas Yeni Casino Siteleri ᐈ Çevrimiçi Kumarhaneler Mart 2024 Les gambling establishments en ligne proposent une grande variйtй de jeux de internet casino gratuits. Türkiye’deki Resmi Web Sitesi Google Play, Türkiye’de kumar oyunlarına izin verecek Her Gün Tatil Olsa ORDU’DA PAZARTESİ GÜNÜ FINDIK FİYATI NASIL? كازينو اون لاين الكازينوهات الممتازة على الإنترنت ألعاب الكازينو المباشرة مينا كازينو العر Google Play, Türkiye’de kumar oyunlarına izin verecek Domain Sorgulama & Domain Fýrsatlarý Canlı Casino Siteleri: 2024 Güvenilir Siteler Seçilmiştir Golden Easter Slot İncelemesi 2024, Demoyu Ücretsiz Oynayın Golden Easter Slot İncelemesi 2024, Demoyu Ücretsiz Oynayın 1xbet Türkiye Giriş Empieza Kayıt 202 Kumar Ve Kumarhaneler Hakkında Pek İlginç 21 Bilgi Kumarhane Doğru Yazımı Nedir? Tdk Ile Kumarhane Kelimesinin Doğru Yazılışı! Mobilbahiste En İyi Kumar Bonusları Ve Kazançlar Mobilbahis Giriş Sayfası On Line Casino Siteleri En Iyi Casino Siteleri 2024 Mostbet: Türkiye’de Internet Casino Mostbet Online Slotlar Ve Canlı-casin Pin Up Casino Oyna Türkiye, Pinup’un Sah Web Sites Ifade Haberleri Son Dakika Ifade Hakkında Güncel Haber Ve Bilgiler “önceliğimiz Transferin Önünü Açmak, Görüştüğümüz Yerler Var” On Line Casino Nuh’un Gemisi Deluxe Resort & Spa, Kıbrıs Bonus Veren Siteler 3 000 Den Fazla Online Oyunu Ücretsiz Oyna En Tehlikeli Kumar Oyunu Ekşi Sözlük Deneme Bonusu Veren Siteler Deneme Bonusu 2024 Explore the Magic of WildCardCity Güvenilir Bahis Siteleri En İyi Kumar Siteleri Balıkesir Triatlonuna Avrupadan Ödül Tricks of the Aviator gambling establishment game by Spribe Çevrim Içi Kumar Siteleri “bonus” Yalanıyla Kandırıyor En Güvenilir Canlı On Line Casino Siteleri Xbetting-tips Com Uncovering the Abundant Tapestry of Ozwin Gambling establishment Evaluating Board Portal Providers Uncovering the Wealthy Tapestry of Ozwin On line casino Electronic Data Area Providers Evaluation Cobra Internet casino: Raising the Australian On the internet Video gaming Practical experience 4 Things to Search for in Safeguarded Cloud Safe-keeping Fastpay On line casino Australia – Simple and No-Taxation Wagering Web page officielle franзaise de Joka Gambling establishment The Software Development Universe Game Woo Internet casino – Enjoy Slot machine games around australia Ostdeutsche Biersorten What Are Virtual Data Rooms? Vitamin D Receptor Polymorphisms Revue du Casino BlackLabel Faktory, kterй ovlivnujн hodnocenн ceskэch online kasin How to Make the Most of Your Web Development Organization and Advertising Efforts L’essor des casinos en ligne en France Boost Meeting Efficiency With Boardroom Technology Developments WildJoker Casino WildCardCity On line casino – Guaranteed Australian Gambling Portal WildCardCity Casino – The Ideal On the internet Gambling establishment within australia Modern Technologies Produce Sharing Documents Online Faster and More Protect Free Virtual Info Room pertaining to Speedy Due Diligence A Review of Data Area Software For people who do buiness Five Board Bedroom Features Which will help You Acquire a More Productive Boardroom Electronic Systems To your Business Understanding Legal Terms and Laws in Today’s World The Laws and Contracts of Hollywood: A Sunset Blvd. Tale Legal Discussion Between Johnny Cash and Antonin Scalia Legal Insights: What Teens Should Know Legal Issues and Exceptions: What You Need to Know Legal Insights and Expert Analysis Celebrity Dialogue: Legal Matters in the 21st Century Famous Personalities Discuss Legal Issues The Boys in the Boat: Legal Advisors and The Quest for Legal Knowledge Understanding Legal Matters: Q&A on Criminal Law, Joint Ventures, and More Enticing Title The Departed: Understanding Basic Work Requirements and Legal Rights Youth Slang Blog Article Legal Insights: A Journey into the World of Law The Ins and Outs of Legal Matters: Everything You Need to Know Legal Insights and Trends: A Rap Guide Mysterious Legal Matters Unveiled Insights and Information: Understanding Various Laws and Regulations Famous People of the 21st Century The Circle of Legal Life The Intersection of Fashion Law, Legal Translation, and THC Oil: A Modern Legal Guide Legal Q&A: Understanding Joinder Federal Rules and More Understanding Legal Terms and Conditions: A Comprehensive Guide Understanding Legal Documentation in a Fun Way! Understanding Legal Aspects: From Islamic Law of Inheritance to Farm Law Protests Understanding Legal Rights: A Guide to Legal Regulations and Requirements Understanding Legal Guidelines and Agreements Famous 21st Century People in Conversation Mysterious Legal Matters Unveiled Legal Matters and Real Estate: A Conversation Between Cameron Boyce and Donald Trump Understanding Legal Expertise and Why It Matters Legal FAQs and Expert Services Understanding Legal Ramifications: Common Law Ontario Health Benefits and More The Ins and Outs of Legal Requirements: From FBI Academy Physical Requirements to Silver Lake Fishing Rules The Legal Underworld: Understanding the Significance of Laws and Rights Legal Conversations: A Dialogue Between Jon Jones and Chadwick Boseman Legal Beats: Bobcats, Real Estate, Babysitting, and More

Investment

There is no reason to cut and run in this market: BlackRock investment chief

Attention spans may well be shortening, but evidence suggests that staying engaged and focused on the long term still pays. Literally.

Investors are not immune to an epidemic of short-termism. Figures from the World Bank indicate that average holding periods for stocks are four times shorter today than they were in 1980.

Investors are also more risk averse. BlackRock analysis reveals that risk taking in the market is well below previous peaks. And fund flows suggest the post-crisis preference for bonds over stocks has yet to reverse.

These tendencies are no doubt exacerbated by a sustained period of short-term political risks over the past year. But the net result of playing it short and safe is that investors may be compromising their long-term goals.

Anticipation of seminal political or other events often triggers one of two investor reactions: an inclination to retreat from the markets, or a bold and often futile attempt to time them.

The past year provided sundry reasons for an investor flight response: Brexit last June, the U.S. election in November, the French elections a few weeks ago and most recently the UK election. This is overlaid with ongoing uncertainty over structural reforms in Europe and relentless political discord in the U.S.

Markets have remained calm despite these concerns. Ironically, some investors view current low market volatility as a sign of complacency – and yet another reason not to invest. But retreating to the sidelines comes with an opportunity cost.

Our analysis of BlackRock’s capital market assumptions indicates that an investment in global equities is expected to deliver a real return far in excess of holding an investment in cash over the next five years.

Equally counterproductive, and decidedly more difficult and perilous: trying to time the market. We don’t need to look too far back for an illustration:

Global equity markets as measured by the MSCI World Index suffered a sharp decline in the two days following the UK vote to leave the European Union, but investors seeking to buy the dip had just 13 trading days to do so. Markets rose back above their pre-Brexit levels on July 12. The market reaction to this month’s general election was even more challenging to time. Domestic-oriented stocks in the UK’s FTSE 250 index bounced back from an initial fall within hours after the unexpected result, as investors digested what the election outcome may mean for Brexit.

The reality is that most investors have long horizons, saving for retirement or for future liabilities such as university fees, and are better served by taking a long view. A look at rolling 10-year periods of the MSCI World index since 1970 reveals that only 2 percent of those periods have generated negative nominal returns; all were linked to the global financial crisis.

We do not see conditions in place for negative long-run returns going forward. In fact, fundamentals are encouraging.

Investors would do well to look through short-term risks, particularly political, and focus on the long-term drivers of return. If anything, the events of the past 12 months reinforce that view. Despite seemingly relentless political stressors, global economic and stock market fundamentals have not been dramatically affected.

Reflation is alive and well, and encouraging economic stability across the world. Our BlackRock GPS, which tracks the global economy, suggests we have entered a period of sustained above-trend growth. The current economic cycle, while unusually long and slow, appears to have ample runway. Our analysis suggests its remaining lifespan can likely be measured in years, not quarters.

The corporate earnings picture is brightening globally. Whereas share buybacks and cost-cutting helped propel bottom-line growth in recent years, first-quarter sales growth in the U.S. appeared the strongest in more than five years. Solid earnings and improving revenues — particularly among cyclical companies — are supportive of global growth.

Equity valuations should find support in sustained economic expansion and in low real bond yields globally. In an environment where government bonds face a less accommodative monetary regime and a macro shift toward higher yields, we believe investors are being compensated to take risk in stocks.

Markets will always provide reasons for worry. Indeed, the sharp fall in Brazilian assets last month as political uncertainty erupted provided a timely reminder that investors must not be complacent about the potential for spikes in volatility and drawdowns. But it is important to remember that periods of short-term market volatility are the norm, even in an economic expansion. We see no immediate red flags to suggest impending sustained market dislocation.

Low volatility readings of late have stoked speculation of an inevitable mean reversion. Whereas high readings on Wall Street’s fear gauge, the VIX, have been reliable buy signals, the opposite is not the case. Low volatility historically says little about the direction of future equity returns.

Ultimately, timing markets is hard — and avoiding them costly. Most investors would do well to focus on the long term. Seeing the forest through the trees can pay its own dividends.

Commentary by Richard Turnill, global chief investment strategist at BlackRock.

For more insight from CNBC contributors, follow @CNBCopinion on Twitter.

Source: Investment Cnbc
There is no reason to cut and run in this market: BlackRock investment chief

Comments are closed.