The Bid 221: A Stock Picker's Guide To Volatility: Global Equity Market Opportunities Across A Shifting Landscape
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May 23, 2025 
Tony DeSpirito, Global CIO for BlackRock's Fundamental Equities Group, shares his insights on navigating turbulent equity markets. He discusses how recent tariffs have created both challenges and investment opportunities. By examining historical volatility, he emphasizes the benefits of buying on dips and the resilience of large-cap value stocks. DeSpirito also highlights the importance of earnings in driving stock prices and suggests strategies for capitalizing on global market dynamics amidst uncertainty.
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Buying Dips Proven Profitable
- Market drawdowns of about 17% are in line with historical averages around 14% per year over 35 years.
- Buying stocks after dips of 20% has historically led to positive returns 73% of the time after one year.
Leverage Volatility for Active Gains
- Use the current volatility and dispersion in markets as opportunities for active investing.
- Focus on sectors affected by policy changes like trade, tax, and deregulation for potential winners and losers.
S&P 500 Growth Skew Exceeds Dot-Com
- The S&P 500 index has become more skewed towards growth stocks than at the dot-com bubble peak.
- Adding value stocks can increase portfolio resiliency and diversification in uncertain markets.