Coronavirus investing strategy: Rick Rieder's picks in stocks, credit - Business Insider

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'Historically attractive': BlackRock's $2.3 trillion bond chief told us 5 places to buy the dip as the coronavirus crisis ravages markets

in the interim due to the sudden downward shift in markets. But he cautions that there may still be more market losses to come.

"With that uncertainty out there and the desire to hold more cash, my sense is we probably have a bit more downside," he said. But for investors who have a medium-to-long-term time horizon, Rieder singled out five parts of the market that have cheapened significantly and are now worth investigating for buying opportunities. There's a paradox between these asset groups that are "historically attractive" relative to normal expectations and where they are trading today.

That was the lowest level since 2009 — and quite low in terms of inflation's' realistic trajectory over that timeframe, according to Rieder. "A month ago, people were talking about maybe there will be too much inflation and wage pressure," Rieder said. He added that even though oil prices may stay low for some time, "it's hard to envision a scenario where we're not going to have any inflationary power for five years." "Even if you stress their earnings radically for the next two or three quarters, those models are very, very attractive," he added.

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This calamity will only exacerbate America's massive wealth inequality. How about America finally embarks on the only feasible path, which is to implement a massive one-off wealth tax on fortunes of $5+ million.

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