BlackRock trims stock holdings in model portfolios, holding a cautious view of excess returns in the stock market

As the U.S. stock market surged to record highs following a strong earnings season, BlackRock began trimming its stock holdings in its $2.2 trillion model investment portfolio business. This global asset management giant has reduced its stock overweight from 3% to 1%. BlackRock executive Gates warned that it is becoming increasingly difficult to expect the stock market to continue delivering excess returns, as the market has already priced in positive factors, and "the path to avoiding potential risks in the future is narrowing."
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