Despite a relatively poor start to 2022, we are confident that we are emerging from the investment regime that prevailed after the 2008 global financial crisis, according to Tony De Spirito, chief investment officer of BlackRock’s core equities division, who presented the fund’s outlook for the second quarter of this year.

In doing so, De Spirito noted that we are witnessing not only a “new world order” that will undoubtedly involve higher inflation and interest rates than those experienced between 2008 and 2020, but also the formation of a more challenging environment for investors, especially in light of the conflict in Ukraine, which emphasizes the rising cost of energy and raw materials.

The beneficiary in this situation, according to the expert, in the new scenario may be U.S. stocks, as they are more protected than European stocks from rising energy prices and the direct economic consequences of the special operation in Ukraine.

As for bonds, this sector, which usually gets an advantage in periods of risk aversion, today has less influence on the investment portfolio, as their correlations with shares have converged.

Meanwhile, 10-year Treasury bond yields will rise as the U.S. Federal Reserve hopes to raise its key rate, and it should reach 3% or 3.5%.

On the other hand, domestic inflation will fall from current highs later this year, and will probably be above the 2% level (as it was before the pandemic) or possibly in the 3% to 4% range for a year at worst.

De Spirito sees good potential for companies as the previous period – extremely low interest rates – was very good for growth stocks and challenging for value stocks. But things are likely to be different now, and some of the appeal of the value strategy will be restored.

This isn’t the first time BlackRock has warned about current market conditions and coming changes. It recently indicated in a note to shareholders that the conflict in Ukraine will end globalization.