Russ Koesterich

Jan 17, 2025 | seekingalpha.com | Russ Koesterich

Jan. 17, 2025 4:30 AM ET, , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , SummaryHistorically, higher rates have exerted downward pressure on stock multiples, i.e. valuations. The relationship has only been significant with extreme moves of 3% or higher.

Jan 17, 2025 | advisoranalyst.com | Russ Koesterich

by Russ Koesterich, CFA, JD, Portfolio Manager, BlackRockIn this article, Russ Koesterich discusses why stocks could continue to advance in 2025 despite the potential for a higher interest rate environment. Key takeawaysHistorically, higher rates have exerted downward pressure on stock multiples, i.e. valuations. That said, the relationship has only been significant with extreme moves of 3% or higher. A modest rise of rates on the back of stronger nominal growth (NGDP) would support earnings.

Jan 17, 2025 | advisorperspectives.com | Russ Koesterich

Key takeawaysHistorically, higher rates have exerted downward pressure on stock multiples, i.e. valuations. That said, the relationship has only been significant with extreme moves of 3% or higher. A modest rise of rates on the back of stronger nominal growth (NGDP) would support earnings. While stocks can move higher, the bond market will continue to matter. Higher rates suggest that equity leadership may continue to reside in companies that are relatively rate insensitive.

Dec 20, 2024 | advisoranalyst.com | Russ Koesterich

by Russ Koesterich, CFA, JD, Portfolio Manager, BlackRockIn this article, Russ Koesterich discusses why cyclical leadership in equities could continue into 2025. Key takeaways2024 has been a year of equity market growth, with market leadership in a state of flux. Since September, cyclical stocks have led markets, a trend that was reaccelerated post-election on hopes of tax cuts, deregulation and onshoring.

Nov 22, 2024 | advisorperspectives.com | Russ Koesterich

Key takeawaysU.S. equities are up 25% for the year, with a 4% gain coming from last week. While some may question the sustainability of rally from here, Russ discusses factors that could support further growth, notably seasonal strength and investor optimism over potential fiscal stimulus and regulatory relief. In this environment, he believes that cyclical sectors are likely to continue to lead strength, with consumer discretionary and financials companies being well positioned.