BlackRock/iShares - Weekly Commentary: Time for Caution

Key Points
1. We have downgraded global stocks. U.S. valuations are elevated and a mid-year Federal Reserve (Fed) rate increase appears more likely.

2. Rising expectations of a June or July Fed rate increase sent U.S. Treasury yields higher last week.

3. We see the odds of a summer Fed rate increase rising if U.S. data this week show solid jobs gains, rising wages and an inflation pickup.