BlackRock Shares Steps to Prepare Portfolios for Higher Bond Yields
Rising US bond yields are pressuring investors as Treasury issuance grows and fiscal-policy uncertainty persists. BlackRock’s Pal Chaudhuri suggests shifting toward short- and intermediate-duration bonds and favoring quality stocks with stable earnings growth, strong balance sheets, and durable competitive advantages, especially firms with high free cash flow. With higher yields limiting valuation expansion, earnings are increasingly key, including amid concerns over AI spending.