World’s largest wealth manager underweight equities

Frankfurt. Despite the recent price losses, Blackrock’s strategists still see no entry signal and are not giving the all-clear for the stock market. Capital market strategist Martin Lück does not currently expect a rapid recovery on the stock exchange.

“It’s not yet the time to buy the market,” said the expert in Frankfurt. Lück pointed out that the world’s largest asset manager is underweight in the global allocation to equities for the first time in seven years. He forecasts “difficult months” for risk assets. It is also underweight in government bonds, while slightly overweight in corporate bonds.

The central banks are suddenly being driven by the Covid outbreak in China, the disrupted supply chains and the war in Ukraine, trying to “give everything” to keep inflation down. Since the central bankers cannot influence the supply shocks – for example from gas prices – they would try to dampen the demand side, even at the price of a recession.