BlackRock strategists announce they have an underweight rating on Wall Street, but also on European and London stock exchanges, over a 6-12 month time horizon.
“We are underweight on US equities – reads the BlackRock note – the Fed intends to raise rates in restrictive territory – explain the strategists – and the sell off that has occurred since the beginning of the year partly reflects this. Despite this, valuations have not fallen enough to reflect the weaker earnings outlook ”.
BlackRock again: “we are underweight on European equities, since the energy price shock following the tragic war in Ukraine puts the area at risk of stagflation”.
On UK equities, BlackRock strategists: “We are underweight on UK equities following its strong performance against other advanced markets, thanks to its exposure to the energy sector”.