BlackRock's Nigel Bolton is betting on banks despite recession worries

Cautious on tech and consumer stocks

Investors need to consider that the period of rising interest rates and higher inflation may “reverse the trend of the past four decades” in markets, according to BlackRock’s Nigel Bolton, meaning that the “big sector winners since the great financial crisis might not be market leaders in the new regime”.

Bolton, co-chief investment officer of BlackRock Fundamental Equities, and said that when seeking out the typical companies that they invest in - with resilient business models, present-day cash flows and growing dividends - they may not be found in the usual, go-to sectors going forward; namely technology and consumer. He said that that these aforementioned sectors "are more vulnerable in this changing economic environment, and others where we see a greater prospect of earnings strength". The macro events being referred to include the aftermath of the Covid-19 pandemic, in particular...