MSCI - BlackRock Analyst Warns Of 'New Geopolitical Regime' That Could Disrupt Markets: 'The Old Playbook No Longer Applies' | Benzinga
BlackRock, the world’s largest asset manager, has issued a warning about the impact of geopolitical volatility on global markets.
What Happened: BlackRock’s analysts, led by Wei Li, have highlighted the increasing geopolitical risks and their potential to disrupt traditional market dynamics, reported Business Insider on Monday.
“The old playbook no longer applies, in our view,” the analysts said in a note, pointing out that the S&P 500 and Dow Jones Industrial Average have recently reached record highs despite the geopolitical turmoil.
Li emphasized that geopolitical fragmentation is contributing to persistent inflation pressures and keeping policy rates above pre-pandemic levels. The recent Red Sea attacks have already begun to impact shipping costs and goods inflation.
These developments have led to a drop in the odds of a Fed rate cut in March, from 75% a month ago to 40% currently, as per the CME FedWatch Tool.
Li also noted that ...