The world’s largest capital management company: In 2023, the financial markets will not rise as before
Blackrock, one of the largest capital management companies in the world, has warned that the recession of 2023 will be different from other recessions in the past years and financial markets will not rise this year as in the past.
To the report Bitcoin.com, BlackRock, the respected asset management and investment company, has presented its predictions of the global economic outlook for the coming year. The firm, which has an estimated $8 trillion in assets under management, predicts a period of economic stagnation caused by central banks’ policies to control inflation. However, according to BlackRock’s Global Outlook 2023 report, this recession will be different from previous periods.
This report explains:
A recession is expected as central banks struggle to contain inflation. This is in contrast to past recessions. In our view, expansionary policy is not a way to support risky assets.
Beyond that, BlackRock predicts that as the economic damage from central bank actions continues to mount, the stock market is likely to suffer even more; Because its value is not estimated based on this possible event.
Regarding inflation, this report notes that central banks should end their contractionary policies before reaching their desired inflation targets and creating economic crises.
This report concludes:
We believe that even in the event of an economic recession, inflation will continue.
There is no prospect of a bullish market
This company believes that the configuration of the new economic structure requires new ways to face the markets; Because the old strategy of “buying at the bottom of the price” will no longer be effective, and instead, there should be a continuous re-evaluation of how the economic damage caused by dynamic policies has been applied to the market.
At the end of this report it is stated:
[در سال ۲۰۲۳] We will not see a return to conditions that can maintain a common bull market between stocks and bonds, as we experienced in the last decade.
Also, the company has expressed its views on digital currencies and related companies in the past. BlackRock CEO Larry Fink believes that most cryptocurrency companies will not survive the FTX crash; A company that used to be one of the largest digital currency exchanges in the market. However, he acknowledged that blockchain technology is important as a tool to help tokenize securities as part of next-generation markets.