BlackRock Says Energy Is Bright Spot as It Sours on Stocks
- The asset manager cut equities to underweight in July
- Energy stocks climb as oil prices drop for third month
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BlackRock Inc.’s senior investment strategist Kurt Reiman says shares of oil and gas companies will continue to be a rare bright spot in an otherwise tough market, even as the asset manager downgrades its position on equities to underweight as central bankers signal further interest rate hikes.
Despite a looming recession, the asset manager expects demand for oil and other commodities to remain strong as Russia’s invasion of Ukraine -- and other such factors as under-investing and navigating materials in other geopolitically sensitive regions -- put pressure on supply following the initial shock from the easing up of pandemic restrictions.