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 restored their overweight view on U.S. equities, believing that the shock to global economic growth from the Middle East conflict “may be contained.” After several weeks ago they downgraded risk and shifted to a neutral stance due to the escalation of the Middle East conflict, the strategists team led by Jean Boivin, head of the BlackRock Investment Institute, said in a report released on Monday local time that 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 is limited. They said, “We have seen progress on both fronts,” adding that the 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.” 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 for the technology sector—we maintain a risk-on stance.” (Source: ODaily)

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