BlackRock Investment Institute boss warns more downward adjustment to come in equities

<p>Jean Boivin is a former Bank of Canada official who now heads the BlackRock Investment Institute. Spoke in an interview last week, reported on Monday across the wires ICYMI:</p><ul><li>year-end rally in stocks could prove short-lived</li><li>equities are not currently fully reflecting the outlook for rates remaining higher for longer</li><li>

“The question we ask is if the surge in rates has fed through to equities, and our answer is not yet,” </li><li>“We think there’s more downward adjustment to come, but we expect to see a better environment in 2024 once the adjustment is complete,” </li></ul><p>If wrong:</p><ul><li>“If it turns out that we’re wrong and there’s a material pick up in economic growth or a sustained pullback in rates, that would prompt us to become more optimistic on stocks” </li></ul><p>—-</p><p>I posted similar from JPM earlier:</p><ul><li><a href="https://www.forexlive.com/news/jpmorgans-kolanovic-warned-that-us-equities-rally-will-not-persist-20231106/" target="_blank" rel="follow" data-article-link="true">JPMorgan's Kolanovic warned that US equities rally will not persist</a></li></ul><p>So many bears</p>

This article was written by Eamonn Sheridan at www.forexlive.com.