Recently, BlackRock Institute released a weekly report stating that due to the stable macroeconomic situation in the United States and the rapid development in the field of artificial intelligence, BlackRock maintains an overweight view on US stocks. BlackRock has raised its view on Eurozone government bonds, downgraded its view on UK government bonds to neutral, and holds a underweight view on emerging market local currency bonds. Despite escalating trade tensions that may continue to bring pressure in the coming months, the performance of US stocks remains strong this year. Although news regarding tariffs continues to emerge, and there may be a 10% comprehensive tariff imposed, as long as the US economy remains resilient and inflation is under control, the bullish trend in US stocks is expected to continue. The resilience of the economy, steady corporate profits, potential deregulation, and investment themes in the AI field all contribute to BlackRock's optimistic outlook. Looking ahead to 2025, BlackRock anticipates unexpected events to occur, and policy changes that will increase market volatility. The current situation has indeed proven this. US long-term bond yields surged initially due to market concerns about the government's finances, then dipped due to worries about economic growth and the US Treasury's commitment to lowering yields. Breakthroughs in the field of artificial intelligence by Chinese startup DeepSeek, as well as news on US tariff policies, have also intensified market volatility. BlackRock believes that tariffs will become a core tool in US policy: a 10% tariff may be a new baseline for revenue generation, while a 25% tariff is more likely a negotiating tool that is expected to trigger market volatility. If a 10% general tariff is imposed on Canada and Mexico, alongside 25% targeted tariffs, the actual US tariff levels will approach those of the 1930s. The impact of tariffs on the economy depends on levels, scope, duration, and any retaliatory measures. BlackRock anticipates increased inflation risks and slower economic growth, leading the Federal Reserve to refrain from cutting interest rates in the short term. Data shows that the fourth quarter 2024 financial reports have confirmed BlackRock's expectation of expanding profit growth trend, with the S&P 500 index excluding the "Tech Seven Giants" showing a 5% year-on-year growth in profits, and the market expecting a 10% growth this year. In tactical allocation, BlackRock continues to be overweight in US stocks but closely monitors factors that could prompt a change in view, such as a slowdown in corporate profit growth. BlackRock will continue to be underweight in US long-term bonds, as despite the US Treasury's commitment to lower long-term bond yields, the massive fiscal deficit and persistent inflation will compel investors to demand more risk compensation for holding bonds, leading BlackRock to project that long-term bond yields will rise again. The tariff policy risk has strengthened BlackRock's preference for Eurozone government bonds, leading BlackRock to maintain an overweight view tactically. Trump has indicated a possible imposition of tariffs on Europe. BlackRock believes that Europe heavily relies on the US as an export market, which means that the damage from tariff risks and any retaliatory measures on Eurozone economic growth could outweigh the impact on inflation. BlackRock has downgraded its view on UK government bonds to neutral, after previously expecting the Bank of England to cut interest rates more than market expectations. Recent fluctuations, especially the resurgence of fiscal concerns, have pushed bond yields to their highest levels in 17 years, followed by a drop as expected by BlackRock, providing a good exit opportunity. The market is gradually approaching BlackRock's expectations of a rate cut by the Bank of England. BlackRock believes that concerns about the UK's fiscal outlook will persist. BlackRock believes that emerging markets, especially vulnerable to tariff shocks and deteriorating global risk sentiment, are underweight in emerging market local currency bonds. Mexico, heavily impacted by tariff policies, is a key component of the emerging market local currency bond index. BlackRock prefers to express worsening risk situations through fixed income assets, hence maintains a underweight view on emerging market local currency bonds. The uncertainty of tariff policies may also trigger currency market volatility and harm returns on investments in emerging market local currency bonds.