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

ME News report, April 14 (UTC+8): BlackRock strategists have resumed an overweight view on U.S. stocks, believing that the shock to global economic growth from the Middle East conflict “may be contained.” After downgrading risk and shifting to a neutral stance several weeks ago as the Middle East conflict escalated, a team of strategists led by Jean Boivin, head of the BlackRock Investment Institute, said in a report on Monday local time that they have been watching “two signals of increased risk exposure,” including the resumption of shipping through the Strait of Hormuz and 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,” with the threshold for returning to war “higher.” BlackRock also highlighted the upcoming earnings season. “Even during the conflict, corporate earnings expectations are still rising, partly thanks to artificial intelligence themes.” For U.S. stocks, BlackRock said, “The impact of the Middle East conflict on global growth is manageable, and along with strong earnings expectations—especially in the technology sector—we maintain a risk-on stance.” (Source: ODAILY)