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2026-05-30 01:56:15
[BlackRock Cuts Equity Holdings in Model Portfolio, Expressing Caution About Stock Market Excess Returns] As U.S. stocks surged to record highs following a strong earnings season, BlackRock has begun cutting equity holdings in its $220 billion model portfolio business. An investment outlook report shows that the world's largest asset manager has reduced its equity overweighting from 3% to 1%. Data shows that this adjustment triggered billions of dollars in flows between BlackRock's various ETFs on Thursday. Michael Gates, chief portfolio manager of BlackRock's Target Allocation ETF model portfolio series, wrote that this move comes after a "landmark earnings season" for U.S. companies. He stated that strong earnings, booming productivity, and a robust economic environment have pushed the S&P 500 to record highs in recent weeks, offsetting the negative impact of the Iran conflict and waning expectations of a Fed rate cut this year. However, he also warned that it is increasingly difficult to expect the stock market to continue to outperform, as the market has already priced in the positive factors, and "we believe the path to avoiding potential risks is narrowing." Gates stated that BlackRock remains confident in the stock market and will continue to maintain its positions betting on corporate profit growth, artificial intelligence, and government spending.
