A senior BlackRock strategist says the days of low inflation and soaring stock markets are over — and investors can expect a decade of lower returns

Financial markets have been filled with cash since the financial crisis. Assets have been driven higher by that.

The days of those days are over according to the co-global head of equities at Blackrock.

The global economy has been pushed into a new regime due to the surge in prices in 2022.

There will be higher inflation and lower returns for investors. It's being called a "regime change" in financial markets.

The old times are over.

Money has been flowing into the stock market over the last decade and a half.

In the wake of the financial crisis, the world's central banks slashed interest rates to record lows and bought trillions of dollars of bonds. The S&P 500 has risen 500% from its trough.

In the 20 years before the Pandemic struck, prices in the US grew at an average rate of 2% a year, but investors have enjoyed decades of stability.

The times have changed, according toBolton. He said that inflation won't fall back to its previous levels in the coming months.

I think it's very unlikely that we'll get back to the regime that we had in the previous 10 years. "Bolton said"

He said cheap labor from China was a key factor in keeping wages and prices low.

The global push to decarbonize economies is likely to push up the price of metals used in renewable energy, as well as nudging up inflation.

Many investment firms and central bankers think a regime change is happening. Christine Lagarde stated that the era of low inflation would end in July.

She said that there are forces that have been unleashed as a result of the Pandemic and that they are going to change the situation.

It is murkier.

What is it that it means for investors? Stronger inflation will cause interest rates to go up.

The returns to all asset classes are going to be lower. He said investors should be more focused on whether the stock is good value, rather than just piling into the fastest growing tech names.

The speculative corners of the market were driven by the low bond yields of the past. The trend has ended as interest rates and bond yields go up.

He said that the last 10 years were unusual. In many areas, you had costless capital.

Interest rates are going to have to go up and they will go down as we return to a more normal environment. The stock market will be more volatile because of that macro environment.