BlackRock’s Ben Powell says that despite continuing sales of global stock markets on Monday, they remain cheerful about a particular set of investment opportunities. Trillions of dollars have disappeared from global markets as investors escape assets that will be hit hard by President Donald Trump’s drastic tariff regime. According to BlackRock’s APAC and the leading investment strategist in the Middle East, Powell, economists warn that the brewing trade war will spell bad news for most of the global economy, but they warn that there are still many areas that could outperform during volatility. “At BlackRock, we’re very excited about the outlook here in the medium term. I think in the short term, the market story will dominate,” he told CNBC’s Dan Murphy on “Access Middle East” on Monday. “It’s Monday’s Great Mado and I think it’ll be choppy for the next few days. I recommend that we remain relatively calm… there’s still a lot in the world… we don’t have to lose sight of it,” Powell said his team’s view on US stocks has been reduced to “neutral” and in the short term he is preparing to “hunker down and support cash.” BlackRock has long invested heavily in infrastructure, which can be difficult for individual investors to access, but Powell said it offers a field of opportunity at a time when mass transport and maritime infrastructure are likely to increase inflation. “I think exposure to inflation contraceptive assets, ports and airports, etc., has historically been mainly the territory of sovereignty and other types of very large institutions,” he said Monday. “I think it’s going to become more and more mainstream, as you’re looking for a more inflationary world. Tariffs need to be inflation over time. So, resilience of inflation (yes) is increasingly important. You think that idea, in different directions like gold, but private assets, infrastructure, we think it’s important.” Powell also pointed to certain regions that they think can provide more predictability to investors. “These pockets of stability are becoming increasingly rare in a chaotic world. So Singapore is coming to mind, and certainly set up (Gulf) region, Abu Dhabi, us. BlackRock opened its first office in Abu Dhabi on Monday. Within the Gulf region there are also offices in Dubai and offices at the regional headquarters in Riyadh, Saudi Arabia. “The balance sheet strength that the local economy has here is very large,” Powell said of the Gulf economy, particularly the United Arab Emirates and Saudi Arabia. “I think stability will continue. Growth will continue… (it will be a tricky time in the next six to 12 months, but at BlackRock, we are looking for a very bright outlook for the UAE.”
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Position among widespread market volatility: BlackRock’s Powell
