BlackRock experts have expressed their forecasts for the second half of the year. The managers of the American giant believe that the stock is not cheap but neither is it on the bubble and recommend investing in Europe and Japan due to the valuation and activity favorable to the equity assets of the respective Central Banks.
In a market environment where risky assets are increasingly on the rise, economic growth is subdued and monetary stimulus remains plentiful, BlackRock identifies three key points: steady but below-trend growth; no formation of market bubbles, despite the fact that there are expensive assets on the markets; the relevant risk of the termination of the American Quantitative Easing. The experts of the American giant thus expect that the most probable scenario (at 57%) is the one called "Low for Longer", which sees that real rates and volatility remain under control, that the momentum could push the share price upwards and that the hunt for yield can be intensified.
The scenario seems to be the same predicted at the beginning of 2014 even if something has changed. The biggest change in the last six months concerns the stabilization of the crisis in emerging markets. Many economies have settled their accounts, laying the foundations for an economic and market recovery.
