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BlackRock Bottom Line: 2024 midyear outlook: Waves of transformation

Speaker: Jean Boivin, Head of the Blackrock Investment Institute, BlackRock

Script

We think the world could be undergoing a transformation on par with past technological revolutions.

It’s being driven by mega forces like the rise of artificial intelligence, the low-carbon transition and the rewiring of supply chains. Those three in particular could unleash a potentially massive wave of investment, reshaping economies and markets. The size, speed and impact of that investment is highly uncertain. So several starkly different outcomes are all feasible, in our view. We think this transformation presents exciting investment opportunities.

BlackRock Bottom Line open

Title: BlackRock Investment Institute 2024 midyear outlook

The three themes for the BlackRock Investment Institute’s 2024 midyear outlook are: getting real, leaning into risk and spotting the next wave.

Our first theme: Getting real. We see the biggest opportunities in the real economy as investment flows into infrastructure, energy systems and technology – and the people driving them. We think companies will need to evolve their business models. Company fundamentals will matter even more.

Next, leaning into risk. Investors may be tempted to wait for clarity on how the transformation will pan out. But we see potentially large rewards for leaning into risk. We look for investments that can do well across outcomes and lean into the current most likely one.

The third theme is spotting the next wave. The path of the transformation could shift over time – and potentially suddenly. This theme is about looking for the next wave of investment opportunity and being ready to overhaul portfolio allocations to capture it.

The bottom line is: we see a possible investment boom ahead that could transform economies and markets. We are taking risk by leaning into the transformation and are ready to reassess as the outlook changes.

General disclosure: This material is intended for information purposes only, and does not constitute investment advice, a recommendation or an offer or solicitation to purchase or sell any securities to any person in any jurisdiction in which an offer, solicitation, purchase or sale would be unlawful under the securities laws of such jurisdiction. This material may contain estimates and forward-looking statements, which may include forecasts and do not represent a guarantee of future performance. This information is not intended to be complete or exhaustive and no representations or warranties, either express or implied, are made regarding the accuracy or completeness of the information contained herein. The opinions expressed are as of July 2024 and are subject to change without notice. Reliance upon information in this material is at the sole discretion of the reader. Investing involves risks.

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Waves of transformation

We believe the world could be undergoing a transformation on par with past technological revolutions. Jean Boivin, Head of the BlackRock Investment Institute, highlights the three themes of the 2024 Midyear Outlook.

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