Opportunities in Equities

BlackRock’s chief equity strategist Kate Moore finds a lot of things interesting about the current investing environment. For one, she and her firm believe that the range of potential economic outcomes has meaningfully widened.

“We think that both the right and the left tails have gotten a little fatter,” Moore said at the CFA Institute Equity Research and Valuation Conference 2018. She sees it as an opportunity for equity investors, even while others are more cautious.

“I feel like we’re at a place in the market right now where everyone is feeling anxious,” Moore said, “where the list of anxieties — whether it’s earnings, or macro, valuations, sentiment, geopolitics, length of the cycle, liquidity concerns — are causing people to take risk down.”

Moore is not convinced that this is a good time to remove equity risk from investment portfolios. “We have to ask ourselves,” she said, “‘Solid growth, rising rates, inflation percolating, but really only on the wage side — is this the right environment to buy a bond proxy?’” And according to Moore, some of the sectors that are most correlated with bond prices are suffering from structural impairments.

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https://blogs.cfainstitute.org/investor/2018/11/16/blackrocks-kate-moore-opportunities-in-equities/