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$4.9 trillion giant BlackRock: Stick with stocks but beware of crowded trades

Putting money into the stock market continues to make sense, but investors need to watch where they take risk as the global economic dynamic begins to shift, BlackRock's Richard Turnill told CNBC on Monday.

The multidecade trend of relatively slow growth and no inflation "driving bond yields ever lower" appears to be on its way out, said Turnill, global chief investment strategist at BlackRock, which has nearly $4.9 trillion in assets under management.

"We're now in an environment where growth is still slow, but where inflationary pressures are picking up, most evidently in the U.S.," he told "Squawk Box."

"I think that has very serious implications for investors," he continued. "Investors have to be very careful where they're taking risk … in a return environment."

The Dow Jones industrial average and S&P 500 were little changed for last week and last month, but up 2.1 percent and 3.3 percent for the third quarter, respectively.

While also relatively flat last week, the Nasdaq was the big winner last month and last quarter, which saw the composite index up nearly 9.7 percent for the three-month period.

Stocks are still attractive relative to bonds, Turnill said. "The risk premium, the amount you'll be paid to take the risk of owning equities, is attractive relative to bonds, largely because bonds are unattractive."

The stock yield plays, as a reach for return, instead of fixed income, like utilities, are vulnerable "to even a modest rise in bonds yields," he contended. "But stocks that can deliver sustained dividend growth ... still look priced very attractively compared to other areas."