BlackRock Investment Institute not fussed by US stocks (recently) at record highs.
In brief:
- still favours buying US equities
- retains tactical overweight position
Citing reasons for seeing equities supported:
- falling inflation
- prospect of the Federal Reserve cutting interest rates
- strong corporate earnings
- should support equities
- expects risk appetite to broaden out beyond tech as more sectors adopt AI
Optimistic they are:
- "We see stock markets looking through recent sticky U.S. inflation and dwindling expectations of Fed rate cuts."
- The Fed reiterating its forecast for three rate cuts in 2024 last week "gave markets the thumbs up to stay upbeat."
