BlackRock Investment Research Hub

BlackRock is shifting its tactical stance toward a strategic overweight in developed market equities, particularly in the U.S., driven by the transformative potential of the artificial intelligence buildout. This pivot is framed by a 'speed and scarcity' outlook where hyperscaler capital expenditure is projected to reach $1 trillion annually by 2028, significantly benefitting tech, energy, and infrastructure sectors. Conversely, the firm maintains an underweight position in long-term U.S. Treasuries and developed market government bonds, navigating a supply-constrained environment and geopolitical risks in the Middle East. Beyond public equities, BlackRock highlights the growth potential of AI in biopharma and the rise of venture debt as a non-dilutive financing tool for tech and healthcare companies. Recent ETP flow data underscores this equity-heavy sentiment, showing over $11 billion in net inflows led by global developed market exposures and a strategic rotation into China and India. Ultimately, the research points toward active management and private market allocations as essential tools for managing 'mega forces' like demographic divergence and the low-carbon transition.