MutualFundWire.com: BlackRock Sunny On Stock ETFs

MutualFundWire.com

The insiders' edge for 40 Act industry executives!
an InvestmentWires' Publication

Tuesday, July 16, 2013

BlackRock Sunny On Stock ETFs

BlackRock [profile] Chief Investment Strategist Russ Koesterich is confident that global stock ETFs will continue to advance in the next 6 months to a year, he writes in ETF Trends.

Koeterich says this will likely happen because U.S. inflation is not a serious threat, bond yields will be volatile but sideways, with 10-year Treasurys hovering around 2.5 percent, and corporate balance sheets are looking good.

He also pointed out that stocks are "reasonably priced" relative to historical valuations. Koesterich advises investors to overweight their portfolios with equities in the long term and increase exposure to international stocks:

…international developed markets are trading at around a 35% discount to the US market, while emerging markets are trading at an astounding discount of more than 40%. On that note, although last week is a brief snapshot, it’s worth pointing out that while US stocks had a strong week, international markets (including emerging ones) actually outperformed.