Investors should pay attention to this.
BLACKROCK ($BLK) manages trillions of dollars in assets, if they are going from over-weighted to neutral on US stocks then there must be a short term risk.
Rising rates and high oil prices are not good for stocks overall.
BLACKROCK JUST CUT US STOCKS TO NEUTRAL AND TURNED BULLISH ON TREASURIES
The shift comes from a note by the BlackRock Investment Institute and CIO Rick Rieder.
- Short-term Treasuries: up to overweight
- Long-term Treasuries: up to neutral from underweight
- US stocks: down to neutral from a long-held overweight
BlackRock says it is still bullish on AI and calls the stock cut short-term risk management: "We are managing near-term risk, not changing our core convictions."