BlackRock’s Rieder says more volatility could ‘play through the financial system’

In a recent interview, BlackRock’s Chief Investment Officer Rick Rieder warned that investors should brace for more volatility in the financial markets, which could have widespread consequences across the financial system.

Rieder cited a number of factors contributing to this potential volatility, including rising inflation expectations, uncertainty around the COVID-19 pandemic, and geopolitical tensions. He also noted that the massive influx of liquidity into the financial system from central bank stimulus measures has created a “sugar high” that could eventually lead to a market correction.

Despite these risks, Rieder emphasized that he remains optimistic about the outlook for the economy and the markets over the longer term. He pointed to the rapid pace of technological innovation and the potential for new breakthroughs in areas like renewable energy and healthcare as reasons for optimism.

However, Rieder cautioned that investors should be prepared for some turbulence along the way. He advised investors to maintain a diversified portfolio and to be prepared to take advantage of opportunities that arise during market downturns.

Overall, Rieder’s comments highlight the potential risks and opportunities facing investors in today’s rapidly changing financial landscape. As always, it’s important for investors to stay informed, remain patient, and maintain a long-term perspective in order to achieve their financial goals.