The U.S. needs a 50-basis-point rate cut: BlackRock CIO

Economic Conditions - The U.S. Bureau of Labor Statistics revised nonfarm payrolls data for the year ending March 2025 down by 911,000 jobs, resulting in a total of approximately 880,000 jobs added during that year [1] - The unemployment rate among young Americans (ages 16-24) was reported at 10.5% in August, while the rate for Black Americans was 7.5%, with the overall unemployment rate at 4.3% [2] Corporate Actions - Major technology companies, including Google and Microsoft, have announced layoffs despite strong sector performance, with Google implementing voluntary exit and buyout programs and Microsoft laying off about 9,000 employees, which is roughly 4% of its workforce [3] Investment Insights - The current investment environment is described as the greatest seen, with opportunities to create portfolios yielding over 6% with a duration under three years and volatility of 2.5% [4] - Gold constitutes 3% to 4% of the investment portfolio, with notable purchases from countries like China, India, and Poland, while Bitcoin is expected to rise but is not viewed as a hedge like gold due to its correlation with the NASDAQ index [4] - Technology stocks are still considered viable investments despite high valuations, driven by significant free cash flow generation [5] - Concerns exist regarding AI's impact on employment rates, yet investments in AI and robotics continue [5] Future Outlook - The ongoing period is characterized as extraordinary due to significant industrial changes, with expectations of a markedly different global landscape in three years [6]