BlackRock Downgrades Emerging Market Equities Over AI Concentration Risk

Odaily Planet Daily News BlackRock's research institute stated in its mid-2026 global investment outlook report that it holds a cautious view on emerging market equities while being optimistic about short- and medium-term eurozone government bonds. Regarding the former, the report highlighted risks related to AI concentration.

Regarding the latter, the report suggested that policy concerns over the interest rate outlook appear overstated. The world's largest asset manager has downgraded its rating for emerging market equities over the next 6 to 12 months from "overweight" to "neutral." The report noted risks in markets such as South Korea, which are highly dependent on AI-related companies. (Jin Shi)