OBAMA’S ECONOMY IS NEARING EXHAUSTION
BlackRock, the world's biggest investor, has warned that central banks are poised to tighten monetary policy in the Anglo-Saxon countries and China, advising clients to be ready to pull out of global stock markets at any sign of serious trouble.
"2014 is the year to squeeze more juice out of risk assets. But investors should be ready to discard the fruit when it starts running dry," says Ewen Cameron Watt, chief strategist for the BlackRock Investment Institute.
The group says in its 2014 Investment Outlook that investors have "jumped on the momentum train, effectively betting yesterday's strategy will win again tomorrow," but vanishing liquidity could leave them trapped if the mood changes. "Beware of traffic jams: easy to get into, hard to get out of," it says.
BlackRock, which manages funds worth $4.1 trillion, says the global system is still in the doldrums and far from achieving sustainable recovery. There are real warning signs for Oabama's economy.