BlackRock Bottom Line: BlackRock Investment Institute 2023 Midyear outlook

Speaker:
Wei Li
BlackRock Global Chief Investment Strategist

Script

2023 has provided more evidence that we’re in a new, more volatile regime. As we look ahead to the rest of the year, we see abundant investment opportunities – but they’re different than those in the past.

Our 3 investment themes for the 2023 midyear outlook are: holding tight, pivoting to new opportunities and harnessing mega forces.

Holding tight is our first theme. In a world shaped by supply constraints, we see central banks being forced to keep policy tight to lean against inflationary pressures. This actually means macro might not always be our friend and this marks a shift from the low-rate environment that prevailed before the pandemic.

Our second theme is pivoting to new opportunities. Greater volatility has brought more divergent security performance relative to the broader market. We think that creates opportunities to generate returns by getting more granular with views and exposures.

The third theme is harnessing mega forces. These are structural changes we think could create big shifts in profitability across economies and sectors. They include the rise of artificial intelligence, the rewiring of globalization driven by geopolitics and the transition to a low-carbon economy, to name a few. The key here is to identify the catalysts that can supercharge them and whether all this is priced in today.

The bottom line is that, even in this more volatile regime, we think there are plenty of investment opportunities that can be captured by getting granular within asset classes and harnessing mega forces. 

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