Taking stock: Q1 2024 equity market outlook

Cash-heavy investors may have missed some of 2023’s strong stock returns. Tony DeSpirito, CIO of Fundamental Equities, eyes 2024 and managing the potential opportunity cost of safety.
Tony DeSpirito
Grow with equities

Equity strategies for today

Get started with these investment ideas from BlackRock’s active equity platform to help your clients reach their goals.

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An unconstrained, high conviction strategy managed by BlackRock’s largest hedge fund manager

The Unconstrained Equity Fund (MAEGX) seeks long-term portfolio growth through its unconstrained approach across benchmarks, sectors, market caps, countries and styles.

Invest in a large cap value strategy built for diverse markets

The BlackRock Equity Dividend (MADVX) fund invests in U.S. large cap value companies with a greater potential for dividend growth, and seeks lower volatility equity returns, trading at attractive prices.

Look beyond traditional fixed income and equities

The BlackRock High Equity Income Fund (BMCIX) seeks to deliver attractive monthly yield/income by combining value-oriented, high-dividend paying U.S. stocks with an options-based income strategy.

Invest abroad with International Dividend

International Dividend (BISIX) invests in the equity securities of international companies that pay attractive, sustainable and growing dividends with the aim of providing international equity returns with less volatility.

The Morningstar RatingTM for funds, or "star rating", is calculated for managed products (including mutual funds, variable annuity and variable life subaccounts, exchange-traded funds, closed-end funds, and separate accounts) with at least a three-year history. Exchange-traded funds and open-ended mutual funds are considered a single population for comparative purposes. It is calculated based on a Morningstar Risk-Adjusted Return measure that accounts for variation in a managed product's monthly excess performance, placing more emphasis on downward variations and rewarding consistent performance. The top 10% of products in each product category receive 5 stars, the next 22.5% receive 4 stars, the next 35% receive 3 stars, the next 22.5% receive 2 stars, and the bottom 10% receive 1 star. The Overall Morningstar Rating for a managed product is derived from a weighted average of the performance figures associated with its three-, five-, and 10-year (if applicable) Morningstar Rating metrics. The weights are: 100% three-year rating for 36-59 months of total returns, 60% five-year rating/40% three-year rating for 60-119 months of total returns, and 50% 10-year rating/30% five-year rating/20% three-year rating for 120 or more months of total returns. While the 10-year overall star rating formula seems to give the most weight to the 10-year period, the most recent three-year period actually has the greatest impact because it is included in all three rating periods.

BlackRock provides compensation in connection with obtaining or using third-party ratings, rankings, or data.

The performance quoted represents past performance of specific funds and does not guarantee future results for such funds. Investment return and principal value of an investment will fluctuate so that an investor’s shares, when sold or redeemed, may be worth more or less than the original cost. Current performance may be lower or higher than the performance quoted. Performance data current to the most recent month end may be obtained by visiting www.blackrock.com.

Standardized performance and performance data current to the most recent month-end may be obtained by clicking on the fund names above.

Explore active equity investment ideas

Sustained higher rates and elevated inflation calls advisors to rethink the way they have typically invested in equities over the past decade. Explore three areas of equity investing that can better position your clients’ portfolios for today.
Diamond
Quality
Higher quality equities tend to weather volatile environments better. Seek out companies with strong balance sheets, high cash flows, and low leverage.
International equities
International
International equities are gaining momentum as several factors such as a weaker dollar, China reopening and a lean towards value all benefit markets abroad.
Healthcare equities
Healthcare
Healthcare has been known for its quality holdings and stable cash flows, which has been able to provide greater downside protection amidst market uncertainty.

BlackRock's active equity mutual funds

Explore BlackRock’s full platform of active equity solutions to address your clients’ needs. 

Ticker Name Morningstar category Overall Morningstar Rating 1-yr Morningstar percentile ranking† 3-yr Morningstar percentile ranking† 5-yr Morningstar percentile ranking† 10-yr Morningstar percentile ranking†
U.S.
MADVX Equity Dividend Large value 4 39 62 47 30
MAFOX Large Cap Focus Growth Large growth 2 8 72 42 25
MARFX Mid-Cap Value Mid cap value 3 54 41 16 25
CMGIX Mid-Cap Growth Mid cap growth 2 10 72 49 7
BIRIX Sustainable Large Cap Core Large blend 3 38 50 70 N/A
BROIX Advantage International Foreign large blend 5 13 6 21 14
International/Emerging Markets
MADCX Emerging Markets Diversified EM 3 55 65 30 21
MAILX International Fund Foreign large blend 1 10 89 9 37
BISIX International Dividend Fund Foreign large blend 5 65 5 9 68
Thematics
SHSSX Health Sciences Opportunities Health 4 44 28 30 7
BGSIX Technology Opportunities Technology 2 43 68 32 32
Income
BMCIX High Equity Income Derivative Income 4 65 5 9 68

Overall Morningstar Ratings as of 12/31/2023. Ratings are based on risk adjusted total returns, are determined monthly and are subject to change.

Equity Dividend Fund rated against 1,131 Large Value Funds; Large Cap Focus Growth rated against 1,118 Large Growth Funds. Mid-Cap Value rated against 383 Mid-Cap Value Funds. Mid-Cap Growth rated against 523 Mid-Cap Growth Funds. Sustainable Advantage Large Cap Core rated against 1,298 US Large Blend funds. Advantage International rated against 698 Foreign Large Blends funds. Emerging Markets Fund rated against 721 Diversified Emerging Markets Funds. International Fund rated against 698 US Fund Foreign Large Blend funds. International Dividend rated against 698 Foreign Large Blend Funds. Health Sciences Opportunities Fund rated against 158 Health Funds. Technology Opportunities rated against 231 Technology Funds. High Equity Income rated against 78 Derivative Income Funds.

As of 12/31/2023, the Equity Dividend Fund received a Morningstar Rating of 3 stars for the 3-year period, 3 stars for the 5-year period and 4 stars for the 10-year period, rated against 1,131, 1,075 and 821 Large Value Funds, respectively. The Large Cap Focus Growth Fund received a Morningstar Rating of 2 stars for the 3-year period, 3 stars for the 5-year period and 3 stars for the 10-year period, rated against 1,118, 1,031 and 810 Large Growth Funds, respectively. Mid-Cap Value Fund received a Morningstar Rating of 3 stars for the 3-year period, 4 stars for the 5-year period and 4 stars for the 10-year period, rated against 383, 363 and 274 Mid-Cap Value Funds, respectively. The Mid-Cap Growth Equity Fund received a Morningstar Rating of 2 stars for the 3-year period, 3 stars for the 5-year period and 4 stars for the 10-year period, rated against 523, 492 and 395 Mid-Cap Growth Funds, respectively. The Sustainable Large Cap Core Fund received a Morningstar Rating of 3 stars for the 3-year period and 4 stars for the 5-year period, rated against 1,298 and 1,191 Large Blend Funds, respectively. The Advantage International received a Morningstar Rating of 5 stars for the 3-year period, 4 stars for the 5-year period and 4 stars for the 10-year period, rated against 698, 642 and 421 US Foreign Large Blend Funds, respectively. The Emerging Markets Fund received a Morningstar Rating of 3 stars for the 3-year period, 4 stars for the 5-year period and 4 stars for the 10-year period, rated against 721, 656 and 402 Diversified Emerging Mkts Funds, respectively. The International Fund received a Morningstar Rating of 1 star for the 3-year period, 3 stars for the 5-year period and 2 stars for the 10-year period, rated against 698, 642 and 421 Foreign Large Blend Funds, respectively. The International Dividend received a Morningstar Rating of 5 stars for the 3-year period, 5 stars for the 5-year period and 3 stars for the 10-year period, rated against 698, 642 and 421 US Foreign Large Blend Funds, respectively. The Health Sciences Opportunities Fund received a Morningstar Rating of 4 stars for the 3-year period, 4 stars for the 5-year period and 5 stars for the 10-year period, rated against 158, 135 and 113 Health Funds, respectively. The Technology Opportunities Fund received a Morningstar Rating of 2 stars for the 3-year period, 3 stars for the 5-year period and 3 stars for the 10-year period, rated against 231, 204 and 159 Technology Funds, respectively. The High Equity Income Fund received a Morningstar Rating of 4 stars for the 3-year period, 3 stars for the 5-year period and 3 stars for the 10-year period, rated against 78, 71 and 34 Options-based Funds, respectively.

Performance results represent past performance and are no guarantee of future results.

Performance data represents past performance and does not guarantee future results. Investment return and principal value will fluctuate with market conditions and may be lower or higher when you sell your shares. Current performance may differ from the performance shown. For most recent month-end performance and standardized performance, click on the fund names above.

† Source: Equity Dividend: 1 Year 48/1,217; 3 Year 684/1,131; 5 Year 468/1,075; 10 Year 200/821. Large Cap Focus Growth: 1 Year 70/1,200; 3 Year 792/1,118; 5 Year 430/1,031; 10 Year 196/810. Mid-Cap Value: 1 Year 190/397; 3 Year 120/383; 5 Year 48/363; 10 Year 59/274. Mid-Cap Growth Equity: 1 Year 51/553; 3 Year 352/523; 5 Year 241/492; 10 Year 28/395. Sustainable Advantage Large Cap Core: 1 Year 543/1,430; 3 Year 620/1,298; 5 Year 183/1,191. Advantage International: 1 Year 86/744; 3 Year 34/698; 5 Year 136/642; 10 Year 55/421. Emerging Markets: 1 Year 420/816; 3 Year 396/721; 5 Year 168/656; 10 Year 86/402. International Fund: 1 Year 68/744; 3 Year 608/698; 5 Year 66/642; 10 Year 127/421. International Dividend: 1 Year 433/744; 3 Year 26/698; 5 Year 65/642; 10 Year 261/421. Health Sciences Opportunities: 1 Year 94/176; 3 Year 48/158; 5 Year 48/135; 10 Year 5/113. Technology Opportunities: 1 Year 133/267; 3 Year 178/231; 5 Year 78/204; 10 Year 52/159. High Equity Income: 1 Year 63/92; 3 Year 7/78; 5 Year 27/71; 10 Year 6/34.

Ratings based on risk-adjusted total return, determined monthly and subject to change.

The Morningstar Rating for funds, or "star rating," is calculated for managed products (including mutual funds, variable annuity and variable life subaccounts, exchange-traded funds, closed-end funds, and separate accounts) with at least a three-year history. Exchange-traded funds and open-ended mutual funds are considered a single population for comparative purposes. It is calculated based on a Morningstar Risk-Adjusted Return measure that accounts for variation in a managed product's monthly excess performance, placing more emphasis on downward variations and rewarding consistent performance. The top 10% of products in each product category receive 5 stars, the next 22.5% receive 4 stars, the next 35% receive 3 stars, the next 22.5% receive 2 stars, and the bottom 10% receive 1 star. The Overall Morningstar Rating for a managed product is derived from a weighted average of the performance figures associated with its three-, five-, and 10-year (if applicable) Morningstar Rating metrics. The weights are: 100% three-year rating for 36-59 months of total returns, 60% five-year rating/40% three-year rating for 60-119 months of total returns, and 50% 10-year rating/30% five-year rating/20% three-year rating for 120 or more months of total returns. While the 10-year overall star rating formula seems to give the most weight to the 10-year period, the most recent three-year period actually has the greatest impact because it is included in all three rating periods.

Expert insights from our active equity team

Read the latest from our BlackRock active portfolio managers and experts on what they’re seeing in the markets and advisor portfolios.