According to BlockBeats, on December 6, BlackRock, the world's largest asset management firm, has upgraded its rating on U.S. stocks to 'overweight' in its New Year outlook. This optimistic stance comes despite the S&P 500 index reaching historical highs, marking a more positive outlook than previous recommendations.
BlackRock's advice to maintain a 'risk preference' for U.S. stocks contrasts with the perspective of Bank of America strategist Michael Hartnett. Hartnett has suggested that investors should focus on international stocks in 2025, expressing concerns that the so-called 'American exceptionalism rally' might be nearing its end. However, BlackRock disagrees with this view. In its 2025 outlook, BlackRock's Investment Institute stated, 'U.S. stocks have consistently outperformed their global counterparts. We believe this trend is likely to continue.'
The firm is doubling down on its bet on the continued rise of the U.S. stock market, driven by the belief that 'superpowers' like artificial intelligence will disproportionately benefit American companies. BlackRock noted, 'We believe that artificial intelligence, as a superpower, will benefit U.S. stocks more significantly, which is why we maintain an overweight position, especially compared to European and other international stocks.'
Additionally, BlackRock anticipates that the incoming Trump administration's potential tax cuts and a more relaxed regulatory environment could support sustained growth in the U.S. economy.