BlackRock Inc., the biggest asset manager in the world, acknowledged that it lost $1.7 trillion in the first half of 2022. This might be shocking to many as BlackRock is known for their massive returns year after year.
In the first half of 2022, both the U.S. economy and stock market faced difficulties. The S&P 500 index was down 21.3% as of June 13th due to inflation reaching a multi-decade high, aggressive monetary policy tightening by the Federal Reserve, and the impacts of the Russia/Ukraine war. This was felt from not only the everyday average retail invest investors but also major funds like BlackRock.
The aggressive Fed policy, the change in the liquidity tide, and slower economic growth are expected to exert pressure on equities even though sharp, countertrend rallies may persist this year.
The second half of the year is also making it very difficult for investors to navigate, and only time will tell how this year ends up financially.