- BlackRock expects that stocks will suffer due to the upcoming recession.
- The research claims that this recession would be unique in its severity.
- BlackRock and Owl Rock Capital encounter Racial bias from a black-owned small enterprise.
The investment and asset management firm BlackRock has released its forecast for the financial markets in the next year. The firm, which is believed to handle $8 trillion in assets, predicts a downturn due to central banks’ anti-inflationary measures. But its 2023 Global Outlook research claims that this recession would be unique in its severity.
The economic harm caused by the acts of central banks is still growing. And BlackRock expects that stocks will suffer more since they are not priced in for this crisis. According to the paper, if central banks continue to tighten monetary policy. Inflation would climb to unintended levels, triggering economic catastrophes.
The report explains:
“Recession is foretold as central banks race to try to tame inflation. It’s the opposite of past recessions: Loose policy is not on the way to help support risk assets, in our view.”
Blockchain Tech To Play Significant Role
They feel that the traditional playbook of “buying the dip” will not be effective in the current economic climate and that instead, a continual examination of how the dynamic policies enforced produce economic harm is required.
The paper also states that there won’t be a repeat of the circumstances that fueled the last decade-long bull market in both equities and bonds.
The company has already shared its view on the crypto market and related businesses. After the collapse of FTX, formerly one of the biggest cryptocurrency exchanges, Blackrock CEO Larry Fink predicted that “most cryptocurrency companies would not survive.”
Though he didn’t fully grasp its implications, he did acknowledge that blockchain technology would play a significant role in the tokenization of assets in the future generation of markets.
BlackRock and Owl Rock Face Racial Bias
The Blueprint Capital Advisors LLC, headquartered in Newark, New Jersey claims that the Rocks conspired with the State officials of New Jersey to embezzle its classified data about the public pension plans.
On this 23rd December, The Judge repudiated the allegations of this deception, stating that the Blueprint had received “different conditions and treatment”. It pointed out the firm about its fair appeal back in 2020 proceedings in the Civil rights suit.
