LONDON (Reuters) – Asset manager BlackRock has said 2023 will require a new investment playbook, backing banks and energy sectors to do well while slapping ‘underweights’ on longer-term European government bonds and emerging market local currency debt.
The BlackRock Investment Institute (BII) said in its 2023 global outlook that while the case for investment credit has brightened and short-term government debt yields looked attractive, the pressures of higher interest rates would weigh on longer-term sovereign bonds.
“The macro damage we expect for next year is yet to be fully reflected in market pricing” said Wei Li, global chief investment strategist at the BII.
(Reporting by Marc Jones and Davide Barcuscia, editing by Karin Strohecker)
