BlackRock downgraded emerging-market equities from overweight to neutral for the next six to 12 months in its 2026 mid-year outlook. The BlackRock Investment Institute identified significant concentration risks in AI-linked companies within Taiwan and South Korea.
The asset manager upgraded short- and medium-term euro-area government bonds to overweight from neutral. This shift reflects a belief that investors overestimate how long regional monetary policy will remain restrictive.
BlackRock maintained an overweight position on U.S. equities to capture broad exposure to the artificial intelligence theme. The firm kept an underweight stance on long-term U.S. government bonds.