“Credit issues and economic uncertainty have continued over the past several months, and we continue to encourage investors to approach financial markets cautiously. On the bright side, however, there recently have been some renewed signs of investor confidence and signals that some areas of the global economy may have begun to recover, although a number of downside risks remain. From an investment perspective, it is important to remember that financial markets are forecasting mechanisms, meaning that markets tend to show signs of recovery before the actual economy does. As such, we do believe that higher risk assets should outperform over the course of 2009, but, high levels of volatility are likely to continue.”
Please click here to continue reading BlackRock’s Global Market Outlook and Asset Allocation Views for U.S. Investors. This recent report represents the collective economic and investment opinions of some of BlackRock’s most senior investors.