Jean Boivin told Business Insider how this risk could disrupt a cushion that stock-market investors have leaned on for years.
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Jean Boivin, the global head of research for the BlackRock Investment Institute, told Business Insider what he sees the next crisis stemming from instead, and explained how it would distort the established relationship between stocks and bonds.What if the source of the next big disruption to global markets is not source as obvious as a recession?, the global head of research for the BlackRock Investment Institute.
This is a combo that could surprise investors and mark a major regime change, he said. Since the Great Recession, for example, the economy's growth has failed to meaningfully lift inflation. It's a mismatch that puzzles even the smartest minds in finance and challenges the"There have been periods where we've seen them moving in different directions," Boivin told Business Insider by phone.
He specifically flagged the negative relationship between stocks and bonds; when stocks fall, bond prices rise because investors pile into Treasuries as a safety net. But this relationship has thrived in the period of low inflation that investors have become accustomed to, according to BlackRock's research.
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