BBUS, page-13606

The market is “too optimistic” in its outlook for corporate earnings, analysts at BlackRock have warned, so investors should prepare for further volatility if they disappoint expectations. In a recent note, the asset management firm – which is the largest in the world – revealed that it has turned away from stocks on a tactical basis and currently sees more opportunities in investment grade bonds.The latest update from the BlackRock Investment Institute adds that part of the reason for this stance is the expectation that earnings growth will start to disappoint investors.