Weekly Commentary: Higher-for-longer the new consensus

This week's BlackRock Investment Institute commentary examines the emerging consensus around "higher-for-longer" interest rates and its implications for markets. Key points include:  

• Market Shifts: Surging global bond yields align with BlackRock's long-held forecast of structurally higher interest rates, with real yields driving volatility.  
• Asset Strategies: Underweight long-dated U.S. Treasuries in favor of short-term bonds and euro area credit; U.S. equities are preferred due to AI-driven earnings growth.  
• Earnings Insights: Positive Q4 U.S. corporate earnings, especially in tech, support risk-on sentiment, with 2025 earnings expected to rise 13%.  

Explore deeper insights on macro trends, asset allocation, and investment opportunities in the full report.