๐ฆ BlackRock: Why Rising Earnings Forecasts and Higher Bond Yields Aren't Contradictory Signals
BlackRock's Investment Institute has lengthened its tactical horizon back to 6โ12 months, arguing markets can absorb higher long-term yields alongside upgraded earnings.
โข Consensus 2026 earnings estimates are still being revised higher, not lower โ unusual five years into an economic cycle.
โข BII expects US corporate earnings to grow 11.6% a year over the next five years, a pace seen in only ~15% of historical five-year periods.
โข Takeaway: durable earnings growth, not falling rates, is now the key support for risk assets.
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