BlackRock's Fredericks on 2017 Investment Strategy

The video discusses the outlook for the 2017 market, highlighting economic growth and the impact of 2016 returns on 2017 expectations. It covers sector rotation, particularly the shift from defensive to cyclical segments, and the valuation of bond proxies. The speaker outlines asset allocation strategies, emphasizing income generation, hedging, and balancing risk and reward. The focus is on controlling volatility and generating strong income in 2017.

What is the general sentiment towards equities in 2017 according to the speaker?

• Overly optimistic without basis

• Measured enthusiasm with supportive growth

• Pessimistic due to economic downturn

• Indifferent due to market saturation

What significant market change occurred at the end of last year?

• An increase in defensive market segments

• A shift from cyclicals to defensive segments

• A massive sector rotation favoring cyclicals

• A decline in bond proxies' valuation

What strategy is being employed in the multi-asset fund for 2017?

• Increasing high yield assets

• Reducing floating rate securities

• Focusing solely on equities

• Adding more duration to the portfolio

How does the speaker view the income market for 2017?

• Highly volatile with low returns

• Stable with potential for strong income

• Unpredictable with high risk

• Declining with minimal opportunities

What is the expected income range for 2017 according to the speaker?

• 5% range

• 3% to 4%

• 1% to 2%

• 6% to 7%