BlackRock's $185 Billion Portfolio Rebalancing, Betting on US Stock Market Outlook and AI Trading Signals

On September 17th, an investment outlook report indicates that BlackRock, the world's largest asset management company, is "increasing its risk exposure". In its $185 billion model investment portfolio platform, it has significantly increased its holdings of U.S. stocks and expanded its exposure to the artificial intelligence (AI) sector. The outlook report points out that with the "top-notch earnings performance" of the U.S. stock market, BlackRock reduced its holdings of international developed market stocks in its series of model portfolios and increased its allocation to U.S. stocks. After the adjustment, these portfolios are overall over-allocated by 2% in stock holdings. Data shows that on Tuesday, as BlackRock completed its asset allocation adjustment, its corresponding ETFs witnessed billions of dollars in fund flows. BlackRock's adjustment of its model portfolios this time is a "vote of confidence" in the upward trend of the U.S. stock market. Driven by the AI sector investment frenzy and market bets on the upcoming rate cut cycle of the Federal Reserve, the S&P 500 Index has hit a historic high this year. BlackRock stated in the investment report that the relatively strong earnings performance of U.S. companies will continue to drive U.S. stocks higher and pointed out that since the third quarter of 2024, U.S. corporate earnings have grown by 11%, while similar companies in other developed markets have seen earnings growth of less than 2%. (FXStreet)