BlackRock predicts rate cuts won’t happen until the second half of 2024
- Investors risk missing gains in stocks and bonds during the Fed’s pause period
- Returns have historically been higher during the pause period than in easing periods
- BlackRock predicts rate cuts won’t happen until the second half of 2024
- Investors have stockpiled cash amid macro uncertainty
- BlackRock recommends holding quality companies with strong balance sheets
- Intermediate durations are seen as the sweet spot for fixed-income portfolios
Investors sitting on cash risk missing out on gains in stocks and bonds during the Federal Reserve’s pause period, according to BlackRock. Historical data shows that returns have been higher on average during the pause period than in periods of easing immediately after the first rate cut. BlackRock predicts that rate cuts won’t happen until the second half of 2024. The firm recommends holding quality companies with strong balance sheets and stable profitability. For fixed-income portfolios, intermediate durations are seen as the sweet spot. Investors have stockpiled cash amid macro uncertainty, driving money-market fund assets to $8.3 trillion globally.
Public Companies: BlackRock (BLK)
Private Companies:
Key People: Gargi Pal Chaudhuri (BlackRock’s head of iShares investment strategy), Kristy Akullian (senior iShares investment strategist at BlackRock), Jean Boivin (BlackRock Investment Institute head)
Factuality Level: 7
Justification: The article provides information from BlackRock about the historical performance of stocks and bonds during the Federal Reserve’s ‘pause period’ between interest rate hikes and rate cuts. It also includes quotes from BlackRock’s head of iShares investment strategy and a senior iShares investment strategist. The article does not contain any obvious misleading information or sensationalism, but it lacks in-depth analysis and relies heavily on information from BlackRock.
Noise Level: 6
Justification: The article provides some relevant information about the historical performance of stocks and bonds during the Federal Reserve’s pause period. However, it lacks in-depth analysis and fails to provide actionable insights or solutions for investors. The article also includes some unrelated information about the stock market’s performance and bond yields, which is not directly related to the main topic.
Financial Relevance: Yes
Financial Markets Impacted: The article discusses the potential impact of the Federal Reserve’s interest rate decisions on stocks and bonds. It provides insights from BlackRock, a major investment firm, regarding the historical performance of stocks and bonds during the Fed’s pause period.
Presence of Extreme Event: No
Nature of Extreme Event: No
Impact Rating of the Extreme Event: No
Justification: The article focuses on financial topics, specifically the potential gains in stocks and bonds during the Federal Reserve’s pause period. It does not mention any extreme events or their impacts.
www.marketwatch.com 
