Jean is Head of Economic and Markets Research of the Blackrock Investment Institute (BII). BII provides connectivity between BlackRock’s portfolio managers, originates economic and markets research and publishes insights.
Disclosure: The content Market Realist publishes should not be construed as investment advice, nor do the opinions expressed necessarily reflect the views of Blackrock.
As international organizations like the International Monetary Fund call for more public investment to boost economic growth, fiscal spending is clearly on top of the investor’s agenda worldwide.
For the first time since the end of the financial crisis, fiscal policy in many developed countries (IVV) (EFA) is gradually turning more expansionary.
The consistent decline in public spending over the last 20 years has led to weak and inefficient infrastructure in the US. According to the Bureau of Economic Analysis, the average age of highways and streets is 28.4 years.
With global growth still subdued despite loose monetary policy and rock-bottom interest rates, the case for fiscal stimulus has become more compelling.
Fiscal policy has turned more expansionary, with stress on fiscal spending and monetary easing, thereby flooding the financial markets worldwide with huge liquidity.
