BlackRock CIO: Di Best Market Wey Get 7% Yields, Low Volatility
BlackRock global fixed-income CIO, Rick Rieder tok for CNBC sey di current conditions bi di "best market" wey ever dey, driven by high bond yields, strong share buybacks and very low volatility. Trillions of dollars wey dem park for money-market funds and corporate buybacks dey tighten di equity supply, plus non-Tesla MAG-7 companies dey report year-on-year earnings growth wey pass 50%, wey dey support high valuations. For di bond side, Rieder highlight sey fixed-income yields between 6.5% and 7% dey happen amid core inflation wey below 3%, dis one dey offer attractive income opportunities.
E yan sey equity volatility wey dey trade around 9.5–10 na "crazy low," e make downside hedges cheap and e dey give "escape hatch" if market change. Even though di technicals dey favor, e warn sey complacency fit hide credit-spread and fixed-income risks. Rieder expect Fed to begin cut rates—fit cut reach 100 basis points—starting September, e talk sey high policy rates don affect housing and low-income borrowers without the disinflation wey dem want. If e forecast true, plenty liquidity, falling rates and low volatility fit boost risk-asset demand, e be bullish sign for crypto traders. All these factors fit make the "best market" atmosphere for risk assets.
Bullish
Rick Rieder get better gree for crypto traders because high fixed-income yields, strong equity technicals and record liquidity dey boost risk-asset appetite. Historically, when rates dey fall and volatility low—like after 2019 Fed pivot—both equities and big cryptocurrencies like BTC and ETH dey rally. If Fed cut 100 basis points start September, e go reduce funding costs, encourage carry trades and portfolio rebalancing into higher-risk assets. Short term, we fit see more volume and price spike for crypto markets as spillover from equity buyback programs and risk-on sentiment dey energize market. Long term, sustained low volatility and good yield difference fit support higher valuations for digital assets as investors look for returns beyond bonds. This combination of technical tailwinds, liquidity and policy easing dey support bullish view for crypto.