Why BlackRock says it’s time to reduce the government bonds, and take on more risk, in your portfolio

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Is it worth changing the composition of your portfolio in response to the coronavirus pandemic? This BlackRock strategist thinks so.

The pandemic-driven bear market certainly was unique in many regards, notably for the speed both of the fall and the rapid recovery.

On the price moves alone, the gains in bonds TNX, +9.89% and drops in equities this year imply worse future returns. But, of course, the world has changed too, even given the wave of government support that should at some point heal the scars of the crisis. What to do instead? Paul says investors should take on more risk, and in credit more so than equities. “Over the next six to 12 months, we favor credit over equities given bondholders’ preferential claim on corporate cash flows and prefer an up-in-quality stance in equities,” he writes.ADP reported 20.36 million private-sector jobs were lost in April, a record figure that comes two days ahead of the Labor Department’s report.

 

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the aim should be to have more portfolio after the risk

Yes blackrock needs more of retirees money.

Actually I sometimes feel the cash in portfolio is a risk.

Like we hv a choice

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