BlackRock shifts portfolio to U.S. Treasurys, cuts equity exposure
BlackRock has adjusted its investment stance for the first time in six years by upgrading its position on U.S. Treasurys and downgrading equities amid rising bond yields. The firm now views U.S. stocks as neutral from overweight and sees an opportunity to lock in income with government bonds, particularly short-term ones where it believes expectations of further Federal Reserve tightening are overdone. The shift is partly funded by profit-taking on equity positions and reflects a broader recalibration due to the 10-year Treasury yield reaching levels not seen since 2002. BlackRock remains cautious about excessive rate hike forecasts, noting that Treasurys have room for positive returns even with further yield increases. Despite its shift in asset allocation strategy, BlackRock maintains confidence in AI and technology stocks but is managing near-term risk due to market volatility driven by policy uncertainty.
Tickers: $BLK
Topics: BlackRock investment strategy interest rates Treasury bonds U.S. equities
Part of the story BlackRock shifts portfolio to U.S. Treasurys, cuts equity exposure (2 articles)