Jean Boivin, head of the BlackRock Investment Institute, emphasizes that AI disruptions could create dispersion and selective alpha opportunities within credit markets.

Key takeaways reiterate the move to neutral or overweight in categories and stress the rationale around AI demand, yields, and policy-rate expectations.

BlackRock’s moves reflect a broader rebalancing of asset allocation in response to shifting global growth, policy expectations, and AI-driven investment trends.

BlackRock remains positive on U.S. equities, underscoring AI-driven exposure to technology as a continued growth driver despite uncertainty over eventual winners.

MSCI Emerging Markets Index earnings growth is projected to accelerate, with more than 50% growth expected in 2026 versus 2025.

For investors, broad EM exposure via index funds implies significant concentration risk in Taiwan and South Korea, while commodity-focused EM plays tied to copper and lithium may benefit from AI-driven demand.

BlackRock’s Investment Institute trims its outlook on emerging-market equities to neutral from overweight for the next six to 12 months, citing concentration risks tied to AI-related firms and exposure in markets like Taiwan and South Korea.

In mid-2026, BlackRock revises its outlook to become more cautious on EM equities and more constructive on short- to medium-term eurozone government bonds.

Credit markets are viewed as resilient, with low default rates and robust debt repayment activity.

Disclaimers note that the content reflects the author’s opinion and is not investment advice, with sourcing credited to Odaily (Golden Ten Data).

The firm also shifts its stance on eurozone government bonds to a more favorable view, arguing that policy-rate concerns are overblown and that yield prospects look attractive.

The article includes sections and FAQs that summarize BlackRock’s stance across asset classes.