![]() ![]() This is a very different world now in 2023.įINK: It is a totally different world and it's actually an easier world to take, you're gonna take less risk to get to your target now more than ever before. ![]() ![]() As you said, in '18 it was like, I can't get a return anywhere. We're gonna see more of that, that doesn't take away from the equity market, but I do believe you're gonna see as were witnessed in '22, we saw a whole recalibration of price earnings ratios, especially growth.įABER: But Larry, to your point, I mean, the bond market is now actually competitive with the equity market. But what I'm, what I'm saying is we are going to see more and more of long-term pension funds reallocating back to bonds, more into bonds as we receive new pension contributions. We see a, obviously a very inverted yield curve so the market is saying I'll buy I'll buy coupon here, I'll buy it. And so, we have now raised, raised about a $1.7 trillion over the last few years from from investors rewarding us in good times and bad times because of the guidance we're giving and also our performance and our fiduciary standard.įABER: Understood and, you know, last year though was distinguished by the fact that whether you own bonds or stocks, you had a bad year, you know.įABER: You seem to be saying, I don't want to read into it too much, but tell me, you know, are you expecting bonds to sort of become a better performer during the course of this year which would seem in some ways to say, well, maybe there won't be as much buying behind equities for the year?įINK: Well, I mean, we still see one or two more tightenings. And this past year, we had $400 billion of net inflows and long-term assets of which 230 billion came from the United States. I think this is going to be a period of time with more dividend stocks again as a play so I look at this as more opportunistic and probably the most important thing of our announcement today in terms of earnings has been BlackRock is winning more share wallet than any firm in the world in good markets when markets are going down or in bad markets or good markets when markets are going up and bad markets are going down. In addition, we are seeing more and more investors looking at infrastructure where you're going to have a combination of some illiquidity but you're gonna have high coupon. And that's a recalibration what that we saw in 2022 and now we're living in an area where you're going to be able to invest differently. When if short rates go up to 5%, you're paying a big premium for that type of perceived growth. And as you talk about a lot about growth equity, when interest rates are near zero, you can, you have the ability to buy high growth stocks because you're not losing any money. And so in reality, we're going to be seeing more and more opportunities of rebalancing back into bonds. By 2018, they could not own bonds, they had to put on more and more illiquidity. In the, 20 years ago, most pension funds had 60, 70% in bonds because they were able to achieve their, their role and their goals that they were trying to achieve. Actually now having you know two year treasuries gonna be close, you know, at four and a quarter, credits at five, high yield that 8%, we're gonna see a whole restructuring and a rebalancing of how portfolios were constructed just a few years ago and you're gonna see now once again more bond investing within the, within the confines of pension fund investing. Investors worldwide had to take on more and more risk to achieve their liabilities. Actually, maybe the hardest years for investing for the long term were the last few years because of negative interest rates. How do you see this year shaping up Larry more of the same or, you know, are your expectations perhaps a bit different than what we've seen last year?įINK: Well from the perspective of long-term investors, I see 2023 to be enormously opportunistic. You talk about 2022 being a year of huge transition. You know, speaking of the new year, I was looking at your your sort of memo to colleagues where you talk about the current operating environment being unlike anything we've seen in decades. Personal Loans for 670 Credit Score or LowerįABER: And to you. Personal Loans for 580 Credit Score or Lower Best Debt Consolidation Loans for Bad Credit
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