🏦 BlackRock BII 2026 Midyear Outlook: 'Micro is Macro' as AI Capex Hits $1T Run Rate
BlackRock's Investment Institute 2026 Midyear Global Outlook identifies three structural themes reshaping portfolios: 'Micro is Macro' — hyperscaler AI capex is approaching $1 trillion annually by 2028, large enough to move macro aggregates; 'Leveraging Up' — AI spend precedes revenues, forcing sustained tapping of public and private credit markets; and 'Diversification Mirage' — when markets are driven by only a few forces, rotating away from them is itself a high-conviction active bet. BII remains pro-risk and favors concentrated AI exposure with active management.
Why it matters: Institutional allocators who treat broad diversification as passive risk reduction may be underestimating how much AI-driven market concentration has made neutrality a de facto active call — one that requires an explicit 'plan B' and rapid pivot capacity.
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