The prevailing view among market participants is that the Federal Reserve will soon move to lower the key rate. However, BlackRock warns against excessive optimism, pointing out that its level next year may not match expectations. In view of this, now it is not worth investing in long-term government bonds, it is better to choose short- and medium-term, according to the company's strategists, whose words are reported by Bloomberg.
BlackRock recommends refraining from buying long-term bonds until at least the second half of 2024. The market expects a reduction in rates in the first quarter, but the investment company sees a high probability that it will happen only by the middle of the year, writes Bloomberg. Rates will be higher than before the pandemic, and volatility will increase, experts predict. In addition, BlackRock has downgraded the rating of shares of developed countries to neutral because of their overvaluation and uncertainty about the future of their economies.