Core Viewpoint - BlackRock emphasizes that unchanged economic laws limit the extent of policy shifts and narrow the range of short-term outcomes, advocating for an overweight position in U.S. stocks and proactive investment strategies across asset classes [1][2][6]. Economic Context - The U.S. stock market has reached new historical highs, driven by themes of artificial intelligence, with the S&P 500 recovering nearly 15% from its decline following the April 2 announcement of U.S. reciprocal tariffs [8]. - June employment data exceeded expectations, with 147,000 new jobs created, leading to a slight increase in the U.S. 10-year Treasury yield to 4.35%, indicating persistent inflationary pressures [8]. Investment Strategy - BlackRock maintains an overweight stance on U.S. stocks, citing the need for structural reforms in Europe to sustain its market performance against the U.S. [2][5]. - The firm prefers Eurozone government bonds and credit over U.S. fixed income due to more attractive yields in Europe, while also favoring emerging market local currency bonds as the dollar may weaken further [6]. Market Dynamics - The firm notes that the current economic landscape favors U.S. performance over other countries, despite historical instances where European markets outperformed [2][5]. - BlackRock identifies "giant forces" as new anchors for returns, suggesting that these forces will drive sustained performance in both short and long terms [7][13]. Upcoming Events - The firm is closely monitoring the expiration of the 90-day suspension of U.S. reciprocal tariffs announced on April 2, with ongoing negotiations among several U.S. trading partners [12].