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BlackRock: 5 Fundamentals For 2013

|Includes: BlackRock, Inc. (BLK)
  1. We have become more upbeat about the prospects for risk assets and stabilizing economic growth (albeit at low levels). Low expectations = potential upside surprises.
  2. The US economy should gain momentum and help boost global growth-IF Washington can avoid the "fiscal cliff" and compromise on a sustainable budget.
  3. Many investors lack conviction in markets where risk taking is often punished and trends last a skinny minute. Rome-and confidence-was not built in a day.
  4. The era of ultra-loose monetary policy may draw to a close, challenging "safe" fixed income assets and heralding a shift toward equities. Safety = new tail risk.
  5. Income investing works in a zero-rate world-but the hunt for yield has narrowed valuations between top-quality and not-so great income assets. Take out the garbage.