BlackRock resumes overweighting US stocks, believes Iran war impact is manageable

Golden Ten Data reported on April 14 that BlackRock strategists have resumed their overweight stance on U.S. equities, believing that the shock of the Middle East conflict on global economic growth is "likely manageable." Just weeks ago, the team led by Jean Boivin, head of the BlackRock Investment Institute, had downgraded risk and shifted to a neutral stance due to escalating tensions in the Middle East. However, in a report released on Monday local time, they stated that they have been monitoring "two signals for increasing risk exposure," including the resumption of shipping through the Strait of Hormuz and signs that the war’s impact on the economy is limited. They noted, "We have seen progress in both aspects," adding that a recent ceasefire is "crucial" and that the threshold for a return to war is "relatively high." BlackRock also emphasized the upcoming earnings season. "Even during the conflict, corporate earnings expectations continue to rise, partly benefiting from the artificial intelligence theme." Regarding U.S. equities, BlackRock stated, "The impact of the Middle East conflict on global growth is manageable and, combined with strong earnings expectations—especially in the technology sector—we maintain a preference for risk assets."