BlackRock Downgrades Emerging-Market Equities Over AI Risks, Tilts to Euro Debt
- BlackRock has cut its emerging-market equity allocation, citing concentration risks and AI-bubble exposure, and is rotating into euro-area government debt instead, according to Bloomberg and Reuters.
- The world's largest asset manager sees better relative value in eurozone bonds as a strong dollar and AI-driven volatility erode EM returns.
- The tactical shift comes as the dollar reasserts itself (Brazilian real labeled 'collateral damage') and bond heavyweights position for a hawkish Warsh Fed.