BlackRock CIO Dumps Stocks for High-Grade Bonds. Heres Why
BlackRocks Rick Rieder is cutting stocks. He says high-grade bonds paying 7% to 8% now beat the 10% to 12% he expects from equities. Rieder is chief investment officer of global fixed income at BlackRock and oversees about $2.4 trillion. He spoke on Yahoo Finances Sozzi Unleashed about the 10-year Treasury yield above 5%. Why the US Treasury Yield Matters The 10-year yield is the interest rate the US government pays to borrow for a decade. It shapes mortgage rates, company loans, and stock prices. This month it rose above 5% for the first time since 2007. TradingView data shows it at 5.167% on Sept. 26, with the 30-year yield at 5.49%. 10-Year US Treasury Yields. Source: TradingView The Federal Reserve raised its benchmark rate to 3.75%–4% on September 16, its first hike in more than three years. Rieder called the moment “not a crisis, but an eye-opener.” Rieder graded stocks a B-minus, lower than he had for a long time. He still likes chipmakers and memory storage, where he sees order backlogs. However, higher inflation-adjusted rates and slowing AI growth weigh on the rest of the market. An income fund he runs yields 7.2% with an A-minus credit rating. It also holds bonds that mature or reset









