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Tue, December 10, 2024

BlackRock sees investor shift from cash after even 'modest' rate cuts

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Investors are expected to increase their allocations to stocks and bonds from cash after even "modest" Federal Reserve interest rate cuts, BlackRock's chief financial officer said on Tuesday.
BlackRock, the world's largest asset manager, anticipates that even modest interest rate cuts by the Federal Reserve in 2024 could prompt investors to shift their money from cash into other assets like bonds and stocks. This expectation is based on the belief that lower rates will reduce the appeal of cash, which has been a favored safe haven during the recent period of high interest rates. BlackRock's strategists suggest that investors are poised to move quickly once the Fed signals a dovish turn, potentially leading to a significant reallocation of funds. This shift could benefit sectors sensitive to interest rate changes, such as real estate and utilities, and might also encourage a broader risk-on sentiment in financial markets.

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[ https://www.reuters.com/markets/us/blackrock-sees-investor-shift-cash-after-even-modest-rate-cuts-2024-12-10/ ]