Closing Bell Closing Bell: Stocks Stretched? 10/20/25
Oct 20, 2025
Rick Rieder, BlackRock’s Chief Investment Officer of Fixed Income, shares insights on the current market, emphasizing strong corporate earnings and GDP as bullish indicators. He discusses the evolving bond market and expresses a need for the Fed to end balance sheet runoff to maintain liquidity. The conversation also touches on rising government debt's effect on yields, gold as a currency hedge, and the recent strong performance of Apple, highlighted by tech reporters Steve Kovach and Alex Kantrowitz, who delve into Apple's iPhone success and AI challenges.
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Macro Setup Fuels Market Momentum
- Rick Rieder says strong GDP, corporate earnings, and eventual Fed cuts create a powerful market tailwind.
- He highlights productivity gains from AI-adjacent investments boosting free cash flow and buybacks.
Hedge Stretched Positions Proactively
- Buy downside protection while remaining long to manage complacency in stretched names.
- Use options overlays or sell covered calls to monetize single-name volatility and hedge risk.
Selective Fixed‑Income Opportunities Remain
- Fixed income yields are attractive but spread assets have narrowed, making selective international exposure useful.
- Rieder prefers U.S. equities but likes European fixed income and emerging market rates for yield.