BlackRock are are underweight U.S. equities, say valuations have not fallen enough yet | Forexlive

This is a six to 12 month view from the firm, in brief:

• We are underweight U.S. equities.
• The Fed intends to raise rates into restrictive territory. The year-to-date selloff partly reflects this. Yet valuations have not come down enough to reflect weaker earnings prospects.

On European stocks too:

• We are underweight European equities as the fresh energy price shock in the aftermath of the tragic war in Ukraine puts the region at risk of stagflation.

And, on the UK:

• We are underweight UK equities following their strong performance versus other DM markets thanks to energy sector exposure.