BlackRock warns equity markets are ‘running on empty’

Most equity markets have been ‘running on empty’ in 2015 with price-to-earnings multiple expansion and dividends hiding ‘sins’ such as flat or falling earnings, according to the BlackRock Investment Institute.

BlackRock warns equity markets are ‘running on empty’

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In fixed income the BII expects to see little or no price appreciation. Selected high yield, investment grade and hard-currency EM debt look attractive relative to government bonds however.

The BII also has a preference for ‘hard assets and market-neutral strategies within alternatives’. including core U.S. commercial real estate in prime cities, infrastructure projects in power or transport, and equity and credit long/short.

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