ESGU - BlackRock upgrades U.S. equities to Overweigh with 'barbell' approach

BlackRock advises clients to overweight U.S. equities using a "nuanced" approach to navigate the difficult winter until COVIDd-19 vaccines are widely available, potentially in spring 2021."The U.S. market has a favorable sector composition compared with other major equity markets," write BlackRock strategists headed by Mike Pyle. "It boasts a higher share of quality companies — those with strong balance sheets and free cash flow generation — in sectors backed by long-term growth trends such as tech and healthcare."The group makes the case for large-cap tech and health-care companies to outperform during the challenging months ahead. But don't overlook a restart in 2021 that will favor cyclical exposures as vaccine developments advance.Taking such a "barbell" approach will achieve greater portfolio resilience amid still high levels of uncertainty over when a vaccine will provide pandemic relief, they write."We believe this is not an ‘either/or’ question — and advocate a more nuanced approach…

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BlackRock upgrades U.S. equities to Overweigh with 'barbell' approach