Tuesday, October 6, 2009

Blackrock likes CMBS & Non-Agency in Credit Fixed Income

Bob Doll and Curtis Arledge from Blackrock this morning on CNBC

-Recession hit a bottom, slow recovery coming.
-Risk assets attractively priced
-Government to continue to provide support going forward. Involvement from the Gov't is with us for a while.
-Currently in the skeptical phase of the market - this is the sweetest spot for risk assets (including equities?, although they may be overbought in the near term)
-S&P 500 could get back to 950 in a correction
-Equities favorable to corporate bonds
-Prefer small over big, value over growth, domestic over developed international, but emerging over developed international too.
-Diversity needed, energy, defense, healthcare (good sell-off due to ObamaCare, good risk-return profile), and growth through technology.
-Fixed Income - Interest Rates still high relative to Fed Targets, but low overall. Thinks inflation will be muted in the medium term. Moving out the yield curve and expect flat yields.
-Like the IG Corporate Bond market.
-Favorite sectors Non-Agency, CMBS, Muni's, and some others that don't really matter so much. @12.15

Hat Tip H-S.

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