BlackRock Bets on America While the Strait of Hormuz Hangs in the Balance

BlackRock upgraded U.S. equities to "overweight" on April 13th, citing strong corporate earnings and what it considers limited lasting damage to global economic growth from the Iran conflict.The U.S.-Israel war against Iran began February 28th with airstrikes that killed Iran's Supreme Leader Ali Khamenei. Iran retaliated by closing the Strait of Hormuz, through which roughly 20% of the world's oil and natural gas normally flows.A Pakistan-brokered ceasefire was announced on April 8th and almost immediately came under strain. Weekend peace talks in Islamabad collapsed on April 12th when Iran refused to commit to ending uranium enrichment.Trump declared a U.S. naval blockade of Iranian ports following the failed talks. Oil prices climbed back above $100 per barrel and the IRGC warned any military vessels approaching the strait would face a "severe response."S&P 500 companies are expected to report first-quarter earnings growth of roughly 13-14%, with some forecasts suggesting that figure could climb to 19% if historical beat rates hold. Technology sector profits are projected to grow 43-45% in 2026.BlackRock's Jean Boivin noted that technology's valuation premium has eroded significantly even as earnings expectations for the sector have climbed sharply, creating what the firm sees as an attractive entry point.J.P. Morgan and Morgan Stanley issued similar guidance, arguing that geopolitical dips should ultimately prove to be buying opportunities for patient investors.The UN warned that a global food crisis could emerge if normal shipping traffic through the Strait of Hormuz is not restored soon, as fertilizers, fuel, and agricultural inputs remain choked off from global markets.Despite the backdrop of a hot war, the S&P 500 has recovered nearly 8% from its seven-month low struck in late March.Read More: https://economiccollapse.report/blackrock-bets-on-america-while-the-strait-of-hormuz-hangs-in-the-balance/See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.