Triggers to change our pro-risk view

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Jan 13, 2025

Gain insights from an expert who shares a pro-risk outlook for 2025. The discussion dives into how potential policy shifts and corporate earnings can influence market volatility. Key factors like trade regulations, tax cuts, and tariffs are explored, revealing their impact on corporate earnings and tech valuations. Stay tuned for a deep dive into the vulnerabilities lurking within public markets, and how these elements may play a crucial role in shaping investment strategies.

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INSIGHT

Potential Volatility Despite Strong US Equity Gains

US equity gains are expected to remain strong.
Policy changes, corporate earnings, and market vulnerabilities could trigger volatility.

INSIGHT

Policy Impacts on Markets

Rolling back banking regulations could boost economic growth and risk asset gains.
However, extending tax cuts and tariffs could increase deficits and inflation.

INSIGHT

Earnings Growth and Tech's Influence

Earnings growth is expected to broaden beyond the tech sector.
However, the "Magnificent Seven" tech companies are still anticipated to drive overall earnings.

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We are pro-risk to kick off 2025. Yet Wei Li, Global Chief Investment Strategist at BlackRock, discusses how we’re ready to evolve our view if policy changes, corporate earnings results and financial market cracks spur volatility.

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