Hi, I'm Tushar Yadava, and I'm here to give you a quick update on the latest changes to our asset allocation views from the BlackRock Model Portfolios, and why we believe they make sense in the current market environment.
We believe in staying tilted to a risk on position, but perhaps less overweight stocks relative to bonds as at the start of the year. Our conviction is still in stocks over bonds, US over international, growth over value and tech over the rest of the market - but the magnitude of each of those directional views is something we would look to adjust. As interest rate volatility recedes, so too does the need for long duration, ultra convex treasuries to ballast equity risk.
We prefer the strength of earnings in the US large cap space, especially relative to the Developed markets ex-US, and we believe active views on themes are a potential opportunity in an environment rich with headline risk. To that end we also think reducing the bets against value in the US and DM, and against China in EM warrant consideration.
Consider adding to “ assets with a fixed supply” like Gold and Bitcoin, as a means to seek diversification away from traditional stock and bond mixes. Gold could be used to offer a risk-off hedge like bonds, and amidst continued global central bank purchasing of the asset, provides a tactical setup to consider owning the asset class. In portfolios with alternatives, a position in Bitcoin offers much of the same digitally native allure of assets with a fixed supply for portfolio construction purposes - and both assets offer a scarcity premium.
For more information, please check out our latest moves on the advisor center, or reach out to your BlackRock market teams. Thanks for watching.
The views expressed herein relate to the BlackRock Model Portfolios as of 2/26/2025. The information shown represents the current investment strategy and philosophy of BlackRock, the model portfolio provider, and is subject to change. There is no guarantee that any forecasts made will come to pass.
