WS #15848
Investor risk appetite is rebounding but remains highly selective, with leadership concentrated in defensive areas like utilities (XLU +0.6%) and consumer staples. BlackRock reported a significant jump in profits as assets under management rose to $15.49 trillion, reflecting resilient market conditions despite the rotation. Meanwhile, UnitedHealth’s CEO cautioned that margin recovery will take years, and Citi raised its Coca-Cola price target, underscoring a preference for stable, defensive earnings profiles over cyclical growth in the current environment.
Defensive Rotation and Institutional Flows
Investor risk appetite is rebounding but remains highly selective, with leadership concentrated in defensive areas like utilities (XLU +0.6%) and consumer staples. BlackRock reported a significant jump in profits as assets under management rose to $15.49 trillion, reflecting resilient market conditions despite the rotation. Meanwhile, UnitedHealth’s CEO cautioned that margin recovery will take years, and Citi raised its Coca-Cola price target, underscoring a preference for stable, defensive earnings profiles over cyclical growth in the current environment.