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Equities Preferred Over Long-Term Bonds, BlackRock CIO Signals

New York, NY – June 30, 2025 – A leading voice in the global investment community, Rick Rieder, Chief Investment Officer of Global Fixed Income at BlackRock, is advocating for a strategic shift in asset allocation, favoring equities over long-duration bonds. Rieder articulated his position on “Bloomberg ETF IQ,” outlining the rationale behind this advice amidst evolving economic indicators and market dynamics. This guidance comes as the Federal reserve continues to navigate a complex monetary policy landscape, influencing bond yields and investor sentiment.

The Rationale Behind the Shift

rieder’s assessment centers on the belief that equities currently offer a more compelling risk-reward profile than long-duration bonds. He suggests that the potential for capital thankfulness in stocks outweighs the limited upside and inherent interest rate risk associated with longer-term fixed income investments. This viewpoint is rooted in expectations for continued, albeit moderate, economic growth and corporate earnings expansion. According to a recent report by the International Monetary Fund (IMF), global growth is projected at 3.2% for 2024 and 3.1% for 2025 [[2]].

The current yield environment also plays a crucial role.