Displaying items by tag: equities

BlackRock is increasing its bets on U.S. equities and artificial intelligence across its $185 billion model-portfolio platform, according to a new investment outlook. The firm shifted allocations away from international developed markets, leaving its models 2% overweight equities and triggering billions of dollars in ETF flows. 

The move reflects confidence in a rally that has pushed the S&P 500 to record highs this year, fueled by strong earnings, enthusiasm for AI, and expectations of Federal Reserve rate cuts. BlackRock pointed to U.S. corporate earnings growth of 11% since late 2024, far outpacing developed peers at under 2%. 

The firm also reallocated tech exposure, moving from a broad tech ETF into an AI-focused fund, which attracted nearly $1.4 billion in a single day. 

Finsum: As BlackRock put it, AI is both a growth driver and a defensive tool for portfolios.

Consumer midcap stocks are starting to show technical strength, with Victoria’s Secret, TripAdvisor, and Steve Madden emerging as standouts beyond the usual Tesla and Amazon focus. 

Victoria’s Secret has surged nearly 50% in three months, breaking out of a consolidation range and reclaiming its 200-day moving average, a sign of a potential trend reversal. TripAdvisor has gained 28% this year, with activist involvement and technical support around $18 pointing to a possible move toward $25. 

Steve Madden, despite being down 27% in 2025, has built a base at $20 and is showing signs of institutional accumulation, suggesting a rebound toward $50 by mid-2026. Retail sales data this week also provided a positive backdrop for the sector, reinforcing momentum for midcaps. 

Finsum: As strength broadens, overlooked mid-cap consumer names like these may offer compelling opportunities relative to the mega caps that dominate headlines.

Treasury Secretary Scott Bessent said Tuesday he is optimistic that the U.S. and China are closing in on a trade agreement. In an interview with CNBC, he noted that upcoming talks ahead of November’s scheduled reciprocal tariffs have become increasingly productive. 

Bessent suggested Beijing now recognizes that a deal is within reach, even after months of back-and-forth since tariffs were first announced in April. 

While China initially faced duties as high as 145%, those measures have been suspended through Nov. 10 to allow negotiations to continue. He also highlighted that U.S. allies are frustrated by the surge of Chinese goods into their markets, a dynamic adding urgency to the talks. 

Finum: With the U.S. trade deficit with China already narrowing sharply in 2025, there could be a strong incentive to reach a trade deal as soon as possible. 

Momentum remains the dominant factor in 2025, with the iShares MSCI USA Momentum ETF (MTUM) up 19.6% and the Invesco High Beta ETF (SPHB) close behind at 18.7%, both well ahead of the S&P 500’s 10.7% gain. 

Growth ETFs are trailing the leaders, with the iShares S&P 500 Growth ETF (IVW) delivering a solid 14.2% return. Factor leadership has been narrow, with momentum and high beta capturing most of the gains so far this year. 

At the same time, investors are showing renewed interest in high-dividend strategies, as the Vanguard High Dividend Yield ETF (VYM) hit a record high. Expectations of Federal Reserve rate cuts are making dividend payouts more attractive relative to bonds. 

Finsum: Momentum, high beta, and dividend strategies are setting the tone for factor performance in 2025.

Midcap stocks are emerging as a compelling option for investors seeking balance in the current U.S. market environment, offering a middle ground between the stability of large-caps and the growth potential—but higher volatility—of small-caps. 

Midcaps, by contrast, combine growth opportunities with resiliency and adaptability, making them well-suited for uncertain conditions in 2025. One core strategy gaining traction is the BNY Mellon US Mid Cap Core Equity ETF (BKMC), which tracks the Solactive GBS United States 400 Index TR. 

BKMC delivers broad diversification by investing in 400 midcap companies, including REITs, with no single holding exceeding 1% of portfolio weight. As of July 31, 2025, the ETF has returned nearly 12% over the prior three months, underscoring midcaps’ potential to deliver both near-term performance and long-term stability.

Finsum: While large-caps provide scale to weather tariff and policy headwinds, they face concentration risks and reduced flexibility, whereas small-caps remain vulnerable to inflation and Federal Reserve policy shifts.