Bloomberg Surveillance · Saturday, September 26, 2026
Jeffrey Rosenberg of BlackRock explains that the current rise in interest rates is a structural change, not a temporary blip, signaling the end of the zero-interest-rate policy era. This shift means higher real interest rates and inflation, impacting everything from mortgages to private equity, and necessitates a broader diversification strategy beyond the traditional 60-40 portfolio.
“This is a structural change, and I think you really have to sort of associate the structural change with. A longer history, right? It's not the thing we got used to for a long time, which was zero interest rates and QE.”
“The post-GFC era lasted 10, 15 years, and it gave us very low mortgage rates. It gave us incredible housing price gains. It gave us incredible private equity gains, everything that was fueled by debt. did really well in that zero interest rate environment. And we're clearly out of that zero interest rate environment. It's a higher real interest rate environment.”
“But for diversification, we're going to have to think about broadening our diversifier set away from just thinking about the traditional 60-40.”