BlackRock has been positioning for a Biden win. The firm might not just be  getting ready for a Biden win but a blue wave sweep according to Bloomberg.

Rupert Harrison, multi-asset strategies portfolio manager at BlackRock, told Bloomberg, “One of the things we’ve been doing in portfolios over the last few months has been bringing down that bias towards growth and quality that has served a lot of investors well over the last few years and trying to flatten up by buying cyclicals and value. We have even been buying European banks which have been a pretty unloved asset class. That hasn’t necessarily worked particularly on the European side the last few weeks but we still feel like there are significant upsides here…

The global macro momentum, and that’s a reflationary momentum, is intact. We don’t think the virus is going to knock that off course this winter… also you’ve got a position for some potential upside as we are going to get very very important news in terms of the efficacy signals of these vaccines from phase 3 trials coming through in the next few weeks and those are potentially game-changing and I don’t think you want to be caught on the wrong side of that.”

There is still a lot of value in European bank stocks. Banks have yet to rally like tech and some other sectors and so with a long enough time horizon, banks are the place to be. 

Rupert Harrison, multi-asset strategies portfolio manager at BlackRock, says the firm is bringing down the bias towards growth in its portfolios. He speaks on “Bloomberg Surveillance.”


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