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2025-09-17 22:37:09
BlackRock Makes Major Rebalance to $185 Billion Portfolio, Betting on US Stocks and AI. An investment outlook report indicates that BlackRock, the world's largest asset management company, is "upgrading its risk profile" by significantly increasing its holdings in US stocks and increasing its exposure to artificial intelligence (AI) within its $185 billion model portfolio platform. The outlook report notes that, driven by the US stock market's "top-tier earnings performance," BlackRock increased its allocation to US stocks across its model portfolios at the expense of international developed market stocks. Following the adjustments, these portfolios' overall equity holdings are 2% overweight. Data shows that on Tuesday, the day BlackRock completed its asset allocation adjustments, billions of dollars in flows occurred between its corresponding exchange-traded funds (ETFs). BlackRock's adjustments to its model portfolios are a vote of confidence in the US stock market's rally: the S&P 500 has reached record highs this year, driven by a surge in AI investment and market bets that the Federal Reserve is about to embark on a cycle of interest rate cuts. In an investment report, BlackRock said that the relatively strong earnings performance of US companies will drive US stocks to continue to rise, and pointed out that since the third quarter of 2024, US corporate profits have grown by 11%, while the earnings of similar companies in other developed markets have increased by less than 2%.
