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Investing.com -- BlackRock analysts said in a note this week that their portfolio managers are "laser focused on how and where to capture opportunities, even as uncertainty abounds" and policymaking continues to disrupt markets.
The firm revealed that this was a key takeaway from their recent internal Midyear Forum.
U.S. stocks saw a rise last week following news of renewed U.S.-China trade talks and a strong U.S. jobs report.
However, BlackRock (NYSE:BLK) notes it’s "too soon to tell if tariffs are hurting the labor market."
The firm is closely watching U.S. CPI data to determine if tariffs are contributing to inflation, with concerns that "persistent inflation pressure limit[s] how far the Fed can cut rates this year."
BlackRock emphasizes that policymaking has become a source of disruption, not stability, with stickier inflation and swelling public debt in the U.S.
This has led to reduced room for maneuver for governments and central banks, making the "macro outlook less predictable."
Despite this volatility, BlackRock’s managers are finding opportunities by "looking through the near-term noise and focusing on the big picture."
They agreed that the drivers of top-performing companies’ equity gains "have not actually changed much."
Among the opportunities, there is a "shared conviction in the AI mega force driving further returns," with Nvidia (NASDAQ:NVDA)’s recent earnings beat cited as an example, despite tariff-related drags.
However, they also noted "medium-term regulatory risk and the potential for slower deployment." Energy is another favored sector, with AI driving global energy demand and governments prioritizing "homegrown, reliable power."