BlackRock cools on US stocks, turns bullish on short-dated Treasuries
BLK•BlackRock Investment Institute downgraded its view on US stocks to neutral, citing potential volatility around AI, and turned overweight on short-term Treasuries.
1. Equity view downgraded
BlackRock Investment Institute closed its long-held overweight view on US equities, shifting to neutral to manage potential volatility around the AI buildout, according to a note dated October 12.
2. Short-term Treasuries favored
The institute also unwound its US Treasury underweight view, held for most of the past six years, and turned overweight on short-term notes, saying expectations for rate hikes were overdone. It moved to neutral on longer-dated Treasuries and became less negative on Japanese government debt.
