The firm said it is cautious on the asset class over a 6- to 12-month horizon and prefers short- and medium-term eurozone government bonds, citing AI concentration risk in markets such as South Korea.
BlackRock’s research arm turned more cautious on emerging-market equities in its 2026 midyear global investment outlook, lowering its 6- to 12-month stance to neutral from overweight. The shift reflects concern that artificial intelligence-related market concentration, including in South Korea, could leave parts of the asset class more exposed. In the same outlook, the firm said it favors short- and medium-term eurozone government bonds, signaling a preference for more defensive positioning in that part of the market.