BlackRock lead off their view on equities with this. Its about as blunt as you’ll get from analysts:
- Many central banks aren’t acknowledging the extent of recession needed to rapidly reduce inflation.
- Markets haven’t priced that so we shun most stocks.
More detail from the asset management firm:
World Bank president Malpass
- It may take years for global energy production to diversify away from Russia, prolonging risk of stagflation
- Pressing danger for developing world is that sharp slowdown in global growth deepens into global recession
- Increased likelihood of recession in Europe
I can’t see anything controversial or even new in those remarks.