BlackRock Investment Institute Videos

Market take Weekly video_20261012 Wei Li Global Chief Investment Strategist BlackRock SCRIPT Camera frame Title slide: Upgrading U.S. Treasuries to lock in income This week we are making some tactical view changes, in particular changing our views on U.S. Treasuries and U.S. equities. 1: Locking in U.S. Treasury income Starting with U.S. Treasuries, we first went underweight U.S. long-duration Treasuries back in October 2020, when the U.S. 10-year [yield] was still below 0.9%. Since then, we have had brief periods of neutral but stayed mostly underweight. The U.S. 10-year [yield] is now at five and a quarter [5.25%], and we are upgrading to neutral to lock in income. We’re refraining from making a bigger bullish call on the long end of the U.S. Treasuries market and instead are upgrading front-end Treasuries into overweight, given the greater income buffer for further yield increases. 2: Downgrading U.S. equities On U.S. equities, we are bringing overweight to neutral, partly funding the Treasuries upgrade. We still prefer AI and tech within the neutral stance. This is a short-term risk management move, really reflecting the fact that we believe investors need to be more dynamic in this new market and macro regime. 3: A more dynamic approach Our conviction in the fundamentals remains intact, and we stand ready to add risk on potentially more attractive venture points. Other adjustments include trimming our Japanese government bond underweight, after Japanese 10-year [yields] rose from [around] 0.4% when we first initiated the position in mid-2023 to now around 3%. Outro: Here’s our Market take The big picture is that the new investment regime requires a very dynamic approach. We are managing risk, not changing our core convictions. Closing frame: Read details: blackrock.com/weekly-commentary