Model Portfolio
Performance and positioning update:
- Broad gains across global risk assets in January masked an otherwise volatile month, which included elevated geopolitical uncertainty and historic swings in precious metals.
- Within equities, energy stocks significantly outperformed all other sectors in the S&P 500 amid U.S. military action in Venezuela, renewed discussion of potential tariffs on NATO countries, and headlines around potential action in Greenland and the Middle East, while materials and consumer staples also gained as equity leadership broadened and AI-related angst weighed on tech.
- The U.S. Federal Reserve held rates steady amid lingering inflation and stabilizing employment, marking its first pause after three consecutive rate cuts in late 2025.
- In fixed income, longer-duration Treasuries underperformed as long-end yields rose, investment grade and high yield credit delivered positive, albeit muted, returns, and local currency emerging market debt benefited from a further weakening U.S. dollar.
Source: BlackRock as of 1/31/2026. All index data for market commentary sourced from Bloomberg as of 1/31/2026. Index performance is for illustrative purposes only. Index performance does not reflect any management fees or expenses. Indexes are unmanaged and one cannot invest directly in an index. Past performance does not guarantee future results. US Dividend Stocks: MSCI USA High Dividend Index. Int’l Dividend Stocks: MSCI World ex USA High Dividend Yield Index. Global REITs: FTSE EPRA Nareit Developed Index. Global Infra. Equity: S&P Global Infrastructure Index. EM Debt: JPM EMBI Global Index. US IG Bonds: Bloomberg US Corp Bond. High Yield Bonds: Bloomberg US HY 2% Issuer Cap Index. Preferreds: S&P Preferred Stock Index. US Treasuries: Bloomberg US Treasury (1972) Index. Global Developed Equity: MSCI World Index. EM Equity: MSCI Emerging Market Index. US T-Bills represented by the Bloomberg US Treasury Bills Index .Bank loans: Morningstar LSTA US Leveraged Loan Index. This material represents an assessment of the market environment as of the date indicated; is subject to change; and is not intended to be a forecast of future events or a guarantee of future results. This information should not be relied upon by the reader as research or investment advice regarding the funds or any issuer or security in particular. A basis point represents one hundredth of a percent.
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Justin Christofel
Global head of Income Investing, Multi-Asset Strategies & Solutions
Justin Christofel, CFA, CAIA, Managing Director, is global head of Income Investing for BlackRock’s Multi-Asset Strategies & Solutions group. He is a portfolio manager for a number of income strategies including the Multi-Asset Income Fund, Dynamic High Income Fund, Managed Income Fund, and Multi-Asset Income model portfolios.
Louis Arranz
Portfolio manager, Multi-Asset Strategies and Solutions (MASS) Income team
Louis Arranz, CFA, CAIA, FRM, Director, is a portfolio manager for BlackRock’s Multi-Asset Strategies & Solutions (MASS) Income team where he focuses on investment research and portfolio management.
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