Model Portfolio
Performance and positioning update:
- Semiconductor, energy, and datacenter stocks declined following the release of a low-cost Chinese large language model.
- Value factor and international developed market stocks were top performers over the month due to insulation from AI infrastructure themes.
- Gold prices continued to rise amid tariff threats and geopolitical instability.
- Despite market volatility, broad US stocks posted positive returns, supported by solid Q4 earnings and potential deregulation and tax cuts from the new presidential administration.
Source: BlackRock. Monthly returns for the period 1/1/25 – 1/31/25. U.S. large cap stocks represented by the S&P 500 Index; U.S.small cap, Russell 2000 Index; international developed, MSCI EAFE Index; emerging market stocks, MSCI Emerging Markets Index; Treasury bonds, Bloomberg U.S. Treasury 7-10 Year Total Return Index; corporate bonds, Bloomberg U.S. Aggregate Bond Index; high yield bonds, Bloomberg High Yield 2 Issuer Capped Index; EM bonds, JP Morgan Emerging Market Bond Index-Global. Index performance is for illustrative purposes only. Index performance does not reflect any management fees, transaction costs or expenses. Indexes are unmanaged and one cannot invest directly in an index. Past performance does not guarantee future results.
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Michael Gates
Michael Gates, CFA, Managing Director, is the head of Model Portfolio Solutions in the Americas within BlackRock's Multi-Asset Strategies and Solutions group.
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