BlackRock - Larry Fink’s Annual Letter

Hi all,

I’ve just read 2023 Larry Fink’s letter to Investors, and I’m curious to know your thoughts.

Personally, couple of things caught my attention:

• BlackRock view on the investment world is pretty common (shrinking globalization and less interconnection of supply chains, inflation to persist in next years, etc) but interesting to see that Larry views inflation as steadily 3.5%/4% in the next years… vs FED target of 2%. What does it mean for markets? FED keeps rate rise for next years (!) ? Or maybe FED shifts to a target closer to 3%?

• Carbon finance: in this year later, more space is given to carbon investment and net zero energy transition space. BlackRock is still committed to massively support the Oil&Gas sector (after all, they’ve great returns here), but in 2023 letter we can read an ask for state intervention and regulation for stricter parameters on net zero. Something is changing here too?

So, curious to know if you align on this vision and your comments

Cheers

Modigliani