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

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ME News, April 14 (UTC+8): BlackRock strategists have resumed their overweight stance on U.S. stocks, believing that the impact of the Middle East conflict on global economic growth “may be contained.” After downgrading risk and shifting to a neutral stance several weeks earlier due to the escalation of the Middle East conflict, in a report issued on Monday in local time, a strategists team led by Jean Boivin, head of the BlackRock Investment Institute, said they have been watching “two signals that would increase risk exposure,” including the resumption of shipping through the Strait of Hormuz and signs that the war’s impact on the economy has been limited. They said, “We have seen progress on both fronts,” and that a recent ceasefire is “crucial,” while the threshold to return to war is “higher.” BlackRock also emphasized 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 will maintain a risk-on stance.” (Source: ODAILY)

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