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Why BlackRock is suddenly more bearish on stocks
Yahoo Finance • • business
Key Points:
- BlackRock has upgraded its outlook on US Treasurys, favoring short-term bonds due to higher yields and expectations of potential Fed tightening, marking a shift after six years of underweight positioning.
- Concurrently, BlackRock downgraded its view on US equities to Neutral, citing increased volatility risks amid the AI sector's growth and rising Treasury yields impacting non-AI stocks.
- Despite the overall cautious stance on stocks, BlackRock remains optimistic about AI-related equities, maintaining conviction in their fundamentals.
- The broader market shows significant weakness, with about 84% of S&P 500 stocks trading at least 10% below their all-time highs, and many experiencing declines exceeding 20%, 30%, or even 50%.
- BlackRock's Rick Rieder described the current market conditions as an "eye-opener" rather than a crisis, highlighting the impact of rising yields on stock valuations.
