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The
market's negative attitude towards the high-yield corporate debt
market - relative to higher-grade debt - has also created an
investment opportunity, Rieder said at the Harbor Investment
Conference in New York.
He said a rally in gold could continue as central banks push
interest rates globally into negative territory, which erodes
investors' savings.
Investors are expecting the European Central Bank to announce
more monetary stimulus measures on Thursday to boost ultra-low
inflation and sluggish growth in the euro zone.
"Gold is mispriced by two or three hundred euros if we're going
to go down the road of growing the balance sheet" of the central
bank, he said. "Money is going to go into gold."
Rieder also expects the U.S. Federal Reserve to hike the
benchmark interest rate it controls one or two times this year,
he said on CNBC, including once in June. And he said the bank's
use of an aggressive stimulus policy called quantitative easing,
or Q.E., is not out of the question.
"I hear people speak about the Fed may ultimately do Q.E. again;
I don't think that's a crazy concept," said Rieder, whose recent
remarks on the U.S. economy had been more optimistic. "The world
is slowing. I think the U.S. economy is going to slow."
That growth is slowing in part because of a rising U.S. dollar,
which hurts emerging markets that had borrowed in that currency,
Rieder said.
The BlackRock Strategic Income Opportunities Fund, a mutual fund
managed by Rieder, cut all of its net exposure to the euro,
Japanese yen and British pound in February, according to a
BlackRock report on Tuesday.
New York-based BlackRock oversees $4.6 trillion in assets
globally, as of Dec 31, 2015, with a third of those assets held
in fixed-income products.
(Reporting by Trevor Hunnicutt; Editing by Bernard Orr and
Cynthia Osterman)
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