BlackRock Investment Institute has downgraded its view on US stocks to neutral, citing potential volatility around artificial intelligence buildouts. The firm also upgraded its stance on US Treasuries, favoring short-dated notes where it believes rate hike expectations are overdone.
The shift by BlackRock, a major global investor, signals caution on US equities and a vote of confidence in Treasuries as a safe haven, potentially influencing market sentiment and asset allocation.
BlackRock Investment Institute has downgraded its stance on US stocks to neutral, citing potential volatility related to artificial intelligence buildouts. The research arm of the world's largest asset manager also upgraded its view on US Treasuries, favoring short-dated notes.
The firm closed a "long-held US equity overweight" view to "manage potential volatility around the AI buildout," according to a note dated October 12. BlackRock Investment Institute is unwinding a "US Treasury underweight" view held for most of the last six years, turning "overweight" at the short end, where it stated rate hike expectations were overdone.
The institute also turned neutral on longer-dated Treasuries and less negative on Japanese government debt, suggesting an improved risk-reward calculation for investing.
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