Asia FX muted, dollar fragile as CPI data boosts Sept rate cut bets
Investing.com -- BlackRock advised that investors should adopt a more tactical approach, as long-standing macroeconomic anchors such as stable inflation and fiscal discipline are showing signs of weakening.
In its latest weekly commentary note, BlackRock (NYSE:BLK) analysts wrote, “We think immutable economic laws on global trade and U.S. debt limit how quickly the world can change. And while we see long-term macro anchors weakening, we think mega forces like artificial intelligence provide a new anchor.”
The firm remains overweight U.S. equities, citing durable earnings, policy support, and the power of emerging technologies.
“We see scope for overall corporate earnings to stay solid even if U.S. growth is dented by tariff-induced disruptions and corporate caution,” BlackRock said.
Despite recent volatility, the note added that “today’s economic setup still favors U.S. outperformance.”
Still, BlackRock emphasized the importance of actively adapting portfolios. “Set-and-forget portfolios no longer serve investors well,” it warned.
With market dispersion on the rise, the firm said there are more opportunities to generate alpha across both public and private markets. “We stay overweight U.S. stocks and get active across asset classes.”
On the fixed-income side, BlackRock favours euro area government bonds and credit over U.S. Treasurys.
“Yields are more attractive in Europe than in the U.S.,” the analysts wrote, noting that “high fiscal deficits may prompt investors to seek more term premium.”
BlackRock concluded that “as long-term macro anchors weaken, we find new ones in mega forces and lean more on our short-term views.”