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BlackRock is reducing risk exposure on a tactical horizon due to rising tensions in the Middle East, which have led to energy markets pricing in a sustained disruption in supply.
The asset management giant has shifted to a neutral stance across equity markets, citing a disconnect between current risk asset pricing and the magnitude of the supply shock. BlackRock recommends that investors remain cautious as uncertainty persists in global markets.
BlackRock previously highlighted the need for investors to adopt a long-term approach as conflict and uncertainty put pressure on global economies. The firm has also cited a $10 trillion infrastructure investment requirement for U.S. growth by 2033. These prior calls reflect BlackRock's ongoing assessment of risk amid shifting market conditions.