BlackRock
May 19, 2026
Upping Developed Stocks Strategically
Weekly UpdateEquitiesRates CreditRates Govt BondsInformation TechnologyHealth Care
BlackRock upgrades developed market equities to overweight strategically, driven by strong AI-related earnings potential, while downgrading high yield to neutral. The move reflects a preference for equity-based growth risk in a scenario where mega forces like digital disruption and geopolitical fragmentation dominate.
Key Takeaways
- 1.BlackRock is upgrading Developed Market (DM) equities to overweight on a strategic basis due to AI-driven earnings momentum.
- 2.High yield debt is downgraded to neutral as the firm prefers taking growth risk through equities rather than credit.
- 3.AI benefits are broadening across sectors and regions, with specific focus on Taiwan, South Korea, and the energy needs for AI infrastructure.
Table of Contents
- Weekly commentary
- Multiple outcomes
- Market backdrop
- Assets in review
- Week ahead
- Big calls
- Tracking five mega forces
- Granular views
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Authors
Jean BoivinWei LiVivek PaulDevan NathwaniSally Du
Securities
S&P 500Brent CrudeU.S. 10-year TreasuryMSCI Emerging Markets IndexBTC
Themes
Artificial Intelligence (AI) as a productivity driverGeopolitical fragmentation and energy shocksStructural (Strategic) vs. Tactical Asset Allocation
Regions
North AmericaEuropeAsia PacificUnited StatesJapanIndia