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From BlackRock Investment Insititute:

Stay risk-on in the short term.

  • We see falling inflation, nearing interest rate cuts and solid corporate earnings
    supporting cheery risk sentiment. We tweak our tactical views and stay pro-risk.
  • U.S. stocks hit record highs last week and 10-year yields fell as the Fed stuck
    with planned rate cuts. Japanese stocks gained on a cautious BOJ policy pivot.
  • U.S. PCE takes center stage this week. We see goods deflation pulling down
    overall U.S. inflation for now before inflation resurges in 2025.

For more commentary from BlackRock, click here.

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