BlackRock believes that in the 6-12 months perspective, it tactically holds a bullish view on the US stocks and prefers opportunities related to AI themes.
Informed by the app of JT Finance, BlackRock said that the performance of US stocks is dominated by AI-related opportunities in the technology sector, which is not a market defect. By tactically holding an overweight view on US stocks in the 6-12 months perspective, it prefers opportunities related to AI themes. With the expansion of US stock profits, it also sees bullish investment opportunities in healthcare and industrial sectors.
Based on the satisfactory profit performance of technology companies, BlackRock is less concerned about valuation indicators. The free cash flow of these technology companies is almost twice the proportion of the entire market's sales revenue, and has the highest profit margin in all industries. In addition, many top technology companies are profitable with abundant cash and can provide funds for the construction of AI infrastructure such as data centers. In recent weeks, as European stocks have fallen, investors who prefer high-quality individual stocks may flock to US stocks.
BlackRock pointed out that the strong profit performance of US technology stocks has expanded to other industries, with the top 8% of annual performance this year. Among the 11 industries of the S&P 500 index, 8 industries had a higher profit margin in the first quarter of this year than the same period last year. This is due to the relief of corporate cost pressure, the rebound of corporate profit margins, and the nominal GDP growth remained above the average pre-epidemic level, which brought some support.
BlackRock sees investment opportunities in the healthcare sector, which is supported by the profit recovery of related companies, the development of medical innovation, and the demand under the population structure transformation. At the same time, it also sees related opportunities in the industrial sector, considering that this sector provides assistance to the construction of AI and low-carbon transformation infrastructure. Companies in various countries will relocate their production bases closer to home, and the supply chain restructuring caused by geopolitical factors will also affect industrial stocks.