BlackRock has downgraded its outlook on emerging market equities from "overweight" to "neutral" for the next 6 to 12 months, citing risks associated with AI concentration. In its 2026 mid-year global investment outlook, BlackRock's research arm highlighted concerns over markets like South Korea, which heavily rely on AI-related companies. Conversely, BlackRock expressed a preference for short- and medium-term eurozone government bonds, suggesting that policy concerns regarding interest rates may be overstated. This strategic shift reflects the asset manager's cautious stance on emerging markets amid evolving technological and economic landscapes.