ExclusiveForget the trade war. Healthy fundamentals point to a sustained economic run, BlackRock says
- It is easy for investors to be distracted by ‘noise’ in the markets, BlackRock’s Mark Wiseman said
- ‘Biggest mistake’ investors can make today is not taking enough risk, he added
Investors need to look beyond the noise being generated by the US-China trade war and focus on the underlying health of the global economy, according to Mark D. Wiseman, the global head of active equities at BlackRock, the world’s largest asset manager.
There’s no reason to believe that the current environment is not sustainable for a very long time, Wiseman told the South China Morning Post.
Fundamentals are “pretty darn good,” Wiseman said, noting that corporate debt and credit both appear to be manageable and there are very little signs of inflation.
“As an investor, it’s very easy to get distracted by the most recent tweet or whatever else it may be,” according to Wiseman, who also is chairman of BlackRock Alternative Investors. “The reality is that, as you look around the world at the global economy today, we are in remarkably good shape.”
BlackRock, based in New York, had assets under management of US$5.98 trillion at the end of last year. The asset manager has 14,000 employees and clients in more than 100 countries.
Outlooks, however, are mixed about whether the trade war would be enough to push the global economy into a recession.