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3 big investing themes for the next decade: BlackRock strategist

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Looking to escape the daily volatility in markets? Then find a few great investing themes and invest around those for the next decade, argues Kate Moore, BlackRock’s head of thematic strategy for the global allocation.

“Three of my favorite themes are disrupting the consumer, the digital transformation and really thinking about climate and ESG opportunities around the globe,” the closely followed strategist revealed on Yahoo Finance Live.

Moore points to software companies as one way to bet on the digital transformations well underway inside global businesses. Meanwhile, the electric vehicle (EV) supply chain (see battery makers, lithium providers, etc.) looks to be a good bet on automakers moving to more climate friendly autos.

“There are great opportunities globally in that space,” said Moore on the EV supply chain.

Thinking longer term as Moore implies is a refreshing reminder early on in what is shaping up to be a volatile year for the markets.

Stocks whipsawed between gains and losses on Tuesday as traders watched Federal Reserve Chair Jerome Powell testify in front of lawmakers. The Fed chief told lawmakers inflation remains a major concern in part because of supply chain bottlenecks caused by the pandemic.

“If we see inflation persisting at high levels, longer than expected, if we have to raise interest rates more over time, then we will,” Powell said.

The Dow Jones Industrial Average, S&P 500 and Nasdaq are all down in January, paced by a 5.5% drop for the Nasdaq.

If you are inclined to trade the increasingly volatile market, Moore is among those on the Street suggesting to buy stocks on the dip from the highs. Moore does offer one caveat unlike many of her peers right now: stay very selective.

“There is some great stuff you should pick up right now, and other stuff that you have to be a little bit more cautious on. In particular, I would say it might be time to start hunting around in the tech and software space. Some of those areas that have been disproportionately punished in the first six trading days of the year,” Moore added.

Brian Sozzi is an editor-at-large and anchor at Yahoo Finance. Follow Sozzi on Twitter @BrianSozzi and on LinkedIn.

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