The research note says better opportunities in developed markets are seen outside the U.S.
- prefer stock in Europe and Japan
- these are better positioned to capture the economic restart over the tactical horizon, as the powerful restart broadens out
- potentially higher taxes (point to the potential for a 28% corp tax, 21% global minimum tax although the firm do not expect these high levels to be hit) and more regulations could pose challenges to the strong performance of U.S. stocks.
- still favour US small and medium-cap companies, won’t be hit as as hard by a rise in tax as will large multi-nationals
Despite all the research and recommendations … check this … on a six to 12-month horizon BlackRock strategists are
- overweight U.S. and U.K. equities
- neutral euro-area
- and underweight Japan
Do as they say not as they do? Go figure.
The BlackRock Investment Institute is basically a research area of the firm.