BlackRock Likes Growth Stocks on Divided U.S. Government
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If the U.S. ends up with a divided government it could mean limited fiscal stimulus, capped increases in bond yields and dampened inflation expectations, while risk assets get a boost, according to BlackRock Investment Institute.
Some fiscal relief “looks possible” in the near term, but the size and scope will be more modest than it would have been with a united Democratic Party government, the BlackRock team wrote in a note published Nov. 7.