BlackRock on EnergyThink you’ve seen it all in the 2020 stock market crash and subsequent rebound for the ages? What’s ahead for investors may rival that. Serious inflation, unseen in decades, is a threat. So are higher interest rates and an end to the era of strong gains for both stocks and bonds. I talked this week to Kurt Reiman, chief investment strategist for Canada at global investing firm BlackRock, about what’s ahead for investors. Here’s an edited transcript of our conversation, which took place after the release of BlackRock’s investing outlook for the second half of 2021. Have you spotted any sectors in today’s market that are undervalued?
Demand for energy is coming back online faster than supply is being brought back, resulting in higher prices that we think can be sustained. It’s interesting to note that Canada is well positioned here. We see that earnings estimates for the energy sector are above where they were before the pandemic, which is not the same as in the U.S.