This week's BlackRock Investment Institute commentary examines the emerging consensus around "higher-for-longer" interest rates and its implications for markets. Key points include:
• Market Shifts: Surging global bond yields align with BlackRock's long-held forecast of structurally higher interest rates, with real yields driving volatility.
• Asset Strategies: Underweight long-dated U.S. Treasuries in favor of short-term bonds and euro area credit; U.S. equities are preferred due to AI-driven earnings growth.
• Earnings Insights: Positive Q4 U.S. corporate earnings, especially in tech, support risk-on sentiment, with 2025 earnings expected to rise 13%.
Explore deeper insights on macro trends, asset allocation, and investment opportunities in the full report.
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