BlackRock "Increase US and Asia Stock Allocation"... South Korea Also Promising

2021 Investment Strategy Unveiled at Korea Investment Corporation Event
Advice to Increase Risk Asset Allocation and Reduce Safe Assets like Government Bonds
Tech and Healthcare Expected to Remain Strong Next Year

[Asia Economy New York=Correspondent Baek Jong-min] The world's largest asset management company, BlackRock, is confident in the stock market's rise next year. Mike File, Director and Head of Global Investment Strategy at BlackRock (photo), predicted a strong stock market and a weak bond market for next year in the '2021 Global Investment Strategy' presentation held on the 17th (local time) during an online video conference hosted by the Korea Investment Corporation (KIC, President Choi Hee-nam) New York office.

Director File advised, "Investors should increase their allocation to risk assets such as U.S. and Asian emerging market equities and reduce their allocation to developed market bonds." He explained, "As the economy reopens in 2021, suppressed demand will surge," and since central banks worldwide are tolerating inflation and are unlikely to raise interest rates easily, capital is expected to flow into risk assets like the stock market.

He mentioned, "The risk factor would be if central banks change their stance." Considering that Jerome Powell, Chair of the U.S. Federal Reserve (Fed), mentioned maintaining zero interest rates and continuing or expanding asset purchase programs just a day earlier, this can be interpreted as indicating no risk factors for the stock market next year.

File also stated, "Despite ongoing U.S.-China trade disputes, it is necessary to increase exposure to China, whose influence on the global economy is expanding." This emphasizes that although the upcoming U.S. administration under Joe Biden is expected to continue the cautious stance toward China following the Donald Trump administration, investment in the Chinese market, which has quickly recovered from the COVID-19 pandemic, remains promising.

File predicted that stock markets in countries surrounding China, such as South Korea and Taiwan, will also show strength. He said, "From a long-term perspective, new capital inflows into ESG (Environment, Social Responsibility, Governance) sectors are expected to continue." He also expressed optimism about investments in core technology companies and the healthcare sector next year.

This content was produced with the assistance of AI translation services.