BlackRock 'Dialing Up Risk Taking' on US Equities: Wei Li

The video discusses the increasing bullish sentiment on U.S. equities, driven by expectations of broadening earnings and the significant role of Big Tech. It highlights current market trends, future predictions for Big Tech's growth, and the impact of valuation and structural forces on equities. The video also covers investment strategies and sentiment drivers, including tax cuts and deregulation talks, with a focus on the tactical horizon of 2025.

What is the primary reason for the increased risk-taking in U.S. equities?

• Expected broadening of earnings beyond Big Tech

• Decrease in interest rates

• Increase in global trade

• Reduction in inflation rates

How much are Big Tech's earnings expected to grow compared to the rest of the market?

• 10%

• 5%

• 18%

• 25%

What is one reason for the momentum in U.S. equities according to the speaker?

• Decreasing consumer confidence

• Closing gap in earnings growth

• Increasing unemployment rates

• Rising interest rates

Why does the speaker believe mean reversion may not apply to U.S. equities?

• Due to short-term market fluctuations

• Because of structural changes and mega forces

• Owing to high inflation rates

• Because of decreasing global demand

What potential policy impacts are mentioned that could drive sentiment further?

• Higher interest rates

• Stricter environmental regulations

• Tax cuts and deregulation

• Increased tariffs