BlackRock: 5 Fundamentals For 2013
- We have become more upbeat about the prospects for risk assets and stabilizing economic growth (albeit at low levels). Low expectations = potential upside surprises.
- The US economy should gain momentum and help boost global growth-IF Washington can avoid the "fiscal cliff" and compromise on a sustainable budget.
- 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.
- 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.
- 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.