Overview

• BlackRock has increased its 'overweight' stance on U.S. equities for 2025, driven by the anticipated economic benefits of artificial intelligence and resilient corporate earnings growth.
• The firm predicts that AI innovations will disproportionately benefit U.S. companies compared to their European counterparts, supporting continued equity market dominance.
• Potential tax cuts and regulatory easing under the incoming Trump administration are expected to further boost U.S. economic growth and corporate performance.
• BlackRock remains cautious about long-term U.S. Treasury bonds due to inflationary pressures and rising government debt, preferring corporate debt and private market investments instead.
• While optimistic about U.S. equities, BlackRock identifies risks such as elevated valuations, potential spikes in bond yields, and geopolitical uncertainties that could impact its outlook.