BlackRock's Q1 2025 outlook highlights an optimistic yet balanced perspective, favouring large-cap value stocks amidst broadening markets and corporate change.

BlackRock provides an optimistic yet cautious outlook for the equity market in Q1 2025, following strong gains in the prior two years. Enhanced market breadth, diminishing uncertainties, and a robust economic backdrop support continued growth opportunities, particularly for large-cap value stocks. Amid periods of corporate change and enduring structural trends like AI and energy transition, active stock selection is poised to play a critical role. However, risks such as potential inflationary pressures and geopolitical uncertainties remain, making a balanced and selective approach essential as markets adapt to evolving conditions.