NEW YORK, May 15 (Reuters) - Central bank efforts to
tame inflation could spark a recession and market selloff that
later this year or in 2024 leads to investment opportunities,
the BlackRock Investment Institute (BII) said on Monday.
Increased market volatility is likely ahead over talks in
Washington to raise the U.S. government's $31.4 trillion
borrowing cap. But the old playbook of buying the dip does not
apply now, the institute said.
Contrary to past recessions, "rate cuts are not on the way
to help support risk assets," it said, adding that a "recession
is foretold as central banks try to bring inflation back down."
Any selloff may cause risk assets to better price in the
economic damage the institute expect from interest rate hikes.
"We're ready to shift our views on a six- to 12-month
horizon to take advantage of opportunities that may appear," it
said.
(Reporting by Herbert Lash; Editing by Will Dunham)
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