It is through effective stakeholder capitalism that capital is efficiently allocated, companies achieve durable profitability, and value is created and sustained over the long-term. In today’s globally interconnected world, a company must create value for and be valued by its full range of stakeholders in order to deliver long-term value for its shareholders. It is not “woke.” It is capitalism, driven by mutually beneficial relationships between you and the employees, customers, suppliers, and communities your company relies on to prosper. It is not a social or ideological agenda. Stakeholder capitalism is not about politics. This is the foundation of stakeholder capitalism. Time and again, what they all share is that they have a clear sense of purpose consistent values and, crucially, they recognize the importance of engaging with and delivering for their key stakeholders. Over the past three decades, I’ve had the opportunity to talk with countless CEOs and to learn what distinguishes truly great companies. ![]() When my partners and I founded BlackRock as a startup 34 years ago, I had no experience running a company. I write these letters as a fiduciary for our clients who entrust us to manage their assets – to highlight the themes that I believe are vital to driving durable long-term returns and to helping them reach their goals. That is why, for the past decade, I have written to you, as CEOs and Chairs of the companies our clients are invested in. It is a long-term endeavor, and we take a long-term approach. The financial security we seek to help our clients achieve is not created overnight. The majority of our clients are investing to finance retirement. "Everyone is going to be on the wrong side of the boat at the wrong time," he said.Each year I make it a priority to write to you on behalf of BlackRock’s clients, who are shareholders in your company. Minerd's call follows comments from the retired hedge fund manager Raoul Pal, who at the end of March said that "the speculative positioning in bonds up until about a week and a half ago, two weeks ago, was the largest ever short position in the history of the bond markets." His call seems to be the first on Wall Street that suggests the 10-year could approach the record low, near 1.35%, set in July. The 10-year topped out at 2.64% in the middle of March - two days before the Federal Reserve hiked interest rates - and has fallen more than 40 basis points.īut Minerd's betting it will fall a lot further as the economy proves itself to be weaker than everyone thinks. The disappointing data is being reflected in the bond market. All of that has caused the Atlanta Fed's GDPNow forecasting tool to predict gross domestic product will grow by a tepid 0.5% in the first quarter. First, the March jobs report disappointed, then retail sales whiffed, and core consumer prices posted their first drop since 2010. Yields have fallen sharply over the past month as key data hasn't lived up to the hype. Since then, however, the GOP's healthcare-reform plan has stalled, and that has caused traders to question Trump's ability to deliver on his proposals to cut taxes and roll back regulations. "If Brexit marked a 5,000-year low in global interest rates, Trump marked the moment investors started to position for a bond bear market," Bank of America's Michael Hartnett wrote in a note to clients shortly after the election. ![]() ![]() That caused analysts on Wall Street to declare the end of the bull market in bonds. Treasury yields surged in the weeks after the election - the 10-year yield climbed about 80 basis points, to more than 2.60% - on the prospects that President Donald Trump's economic agenda would bring inflation back to the United States. In a tweet on Monday morning, Minerd said, "The next stop for 10-year Treasury yields is 2%, with the probability rising that we revisit 1.5% or lower this summer." Scott Minerd, Guggenheim Partners' global chief investment officer and head of Guggenheim Investments, the asset management arm of Guggenheim, just made a big call on the 10-year yield. Account icon An icon in the shape of a person's head and shoulders.
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