BlackRock has trimmed its exposure to U.S. equities and increased its allocation to short‑dated Treasury securities, according to Reuters. The asset manager signaled a shift in outlook, citing concerns over equity valuations and a preference for the safety and liquidity of near‑term government bonds.
The move could weigh on equity markets, pulling capital toward Treasuries and supporting bond prices while pushing yields lower. Investor sentiment may tilt more defensive, with risk‑off flows benefiting short‑term Treasury funds and potentially dampening demand for growth stocks.
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