May 15 (Reuters) - Blackrock's strategist Richard Turnill:
* Blackrock's strategist Richard Turnill says with inflation up from depressed levels, see rising real rates driving yields up from here
* Blackrock's strategist richard Turnill says "real yields do not yet appear to be pricing in the sustained economic expansion we see ahead"
* Blackrock's Turnill says rising real yields also likely mean lower-to-flat stock valuations, a factor holding down equity returns
* Blackrock's Turnill - Generally prefer non-U.S. Equities and selected alternatives over fixed income, credit over government bonds on fiveyear time horizon
* Blackrock's Turnill says many alternatives currently do not compensate investors generously for their illiquidity, in our view
* Blackrock's Turnill says prospective equity returns are low relative to history, but we see even more subdued returns for government debt as yields shift gradually higher
* Blackrock's Turnill says many alternatives offer diversification benefits & potential excess returns in long run if investors can access top managers Further company coverage: