BlackRock restores overweight position on U.S. stocks, believing the impact of the Iran war is manageable

ME News message: On April 14 (UTC+8), BlackRock strategists restored their overweight view on U.S. stocks, believing that the shock to global economic growth caused by the Middle East conflict “may be contained.” After having reduced risk and shifted to a neutral stance a few weeks earlier as the Middle East conflict escalated, the strategists—led by Jean Boivin, head of the BlackRock Investment Institute—said in a report on Monday local time that they have been keeping an eye on “two signals indicating increased risk exposure,” including a resumption of shipping through the Strait of Hormuz, as well as signs that the war’s impact on the economy is limited. They said, “We have seen progress on both fronts,” and that a recent ceasefire is “crucial,” while the threshold for returning to war is “higher.” BlackRock also emphasized the upcoming earnings season. “Even during the conflict, corporate earnings expectations are still rising, partly thanks to the artificial intelligence theme.” Regarding U.S. stocks, BlackRock said, “The impact of the Middle East conflict on global growth is manageable, and—together with strong earnings expectations, especially in the technology sector—enables us to maintain a risk-on stance.” (Source: ODAILY)