BlackRock Investment Institute still favors buying US equities, stays tactical overweight

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.”

This article was written by Eamonn Sheridan at www.forexlive.com.