Midyear Forum Speed Meets Scarcity

BlackRock's midyear outlook centers on the acceleration of AI investment and geopolitical risks like the Middle East conflict. The firm remains overweight U.S. equities while warning that traditional portfolio diversifiers are less effective.

Key Takeaways

• 1.The AI buildout is accelerating with capital expenditure estimates for major hyperscalers projected to reach $1 trillion by 2028.
• 2.Geopolitical conflict in the Middle East and potential disruption to the Strait of Hormuz present significant supply shocks to energy flows and global supply chains.
• 3.BlackRock remains tactically overweight on U.S. equities due to strong AI-driven earnings growth which offsets the drag of higher interest rates.

Table of Contents

• Weekly commentary
• Scaling away
• Market backdrop
• Assets in review
• Week ahead
• Big calls
• Tracking five mega forces
• Granular views

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