Our largest GME long, Blackrock, is ready for rates to be high through 2030.
One of the largest institutional investors in the world, BlackRock, is now laying out their plan for the next few years. Unlike most of the large investment banks, who see the Federal Reserve cutting interest rates in 2024, BlackRock predicts the opposite will take place. They see the Fed becoming stuck and forced into keeping rates high for the long term.
Additionally they layout in detail in a recent investor note, how the market instability, and global volatility is good, beneficial for their new strategy of playing a larger role in the world of private lending. We go into the details of what this means, and the size of the returns they plan to make. After recently meeting with large in need borrowers, like the government of Ukraine, and helping to fund the rebuild effort. Well, where do you think all the money is coming from? Do these borrowers have the money to pay back these loans at these jumbo rates? I think you'll be surprised to find out who exactly is funding all of this.
We also show what BlackRock is projecting for this week's GDP and GDI revisions (gross domestic product and gross domestic income), and how they are even more bearish than Morgan Stanley.