BlackRock Predicts AI Expansion Will Maintain Magnificent 7's Appeal in 2026
BlackRock's AI Outlook: BlackRock emphasizes that artificial intelligence is not just a tech trend but a macroeconomic force that will shape growth, inflation, and market leadership, predicting global AI capital expenditure could reach $5 trillion to $8 trillion by 2030, primarily driven by the U.S.
Inflation and Debt Concerns: The firm forecasts that due to increased government and corporate debt for AI investments, a return to sub-2% long-term yields is unlikely, leading to structurally higher term premia and a bond market more vulnerable to shocks.
Stock Market Dynamics: BlackRock advises that diversifying away from U.S. megacap tech is now an active bet against the main driver of global growth, as the concentration of market power in a few tech companies reflects the current economic landscape.
Risks of Misplaced Diversification: The asset manager warns that many portfolios perceived as diversified are not, as shifting capital away from AI-linked assets may not provide the expected risk reduction, especially if the AI sector experiences a downturn.
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BlackRock Predicts AI Expansion Will Maintain Magnificent 7's Appeal in 2026
BlackRock's AI Outlook: BlackRock emphasizes that artificial intelligence is not just a tech trend but a macroeconomic force that will shape growth, inflation, and market leadership, predicting global AI capital expenditure could reach $5 trillion to $8 trillion by 2030, primarily driven by the U.S.
Inflation and Debt Concerns: The firm forecasts that due to increased government and corporate debt for AI investments, a return to sub-2% long-term yields is unlikely, leading to structurally higher term premia and a bond market more vulnerable to shocks.
Stock Market Dynamics: BlackRock advises that diversifying away from U.S. megacap tech is now an active bet against the main driver of global growth, as the concentration of market power in a few tech companies reflects the current economic landscape.
Risks of Misplaced Diversification: The asset manager warns that many portfolios perceived as diversified are not, as shifting capital away from AI-linked assets may not provide the expected risk reduction, especially if the AI sector experiences a downturn.
Does Donald Trump want a recession? His ‘reign of tariffs’ could deliver one.
Impact of Tariff Policies: President Trump's ongoing tariff policies may lead the U.S. economy towards a recession, undermining previous optimistic forecasts.
Economic Outlook: The potential consequences of these tariffs have diminished expectations for a prosperous economic period in the upcoming years.
The 'new kids on the block' for AI trade investors
Impact of DeepSeek on Tech Stocks: China's AI model, DeepSeek, has caused a decline in tech stocks as it competes with Silicon Valley leaders, prompting investors to reassess their strategies in the AI sector.
Investment Insights from Sylvia Jablonski: Jablonski emphasizes the importance of strategic investments in tech and AI stocks during market dips, highlighting Microsoft as a strong player and suggesting that quantum computing will play a vital role in the future of AI.
How sidestepping Big Tech has paid off lately in these stock ETFs
Equity Strategies Performance: This week's ETF Wrap highlights equity strategies that have outperformed the Big Tech fund and the popular QQQ ETF in 2025 and over the past month, amidst concerns about heavy investments in large-cap stocks.
Feedback and Social Media: Readers are encouraged to provide feedback via email or follow the authors on social media platforms for updates.
Big Tech ETF on pace to snap weekly winning streak amid S&P 500 breadth worries
Market Analysis: This week's ETF Wrap discusses the risks associated with narrow breadth in the S&P 500, highlighting the struggles of U.S. stocks following the Federal Reserve's recent policy meeting.
Feedback and Contact Information: Readers are encouraged to provide feedback and tips via email or follow the authors on social media platforms for updates.
The Math Shows XMAG Can Go To $22
ETF Analyst Target Price Insights: The Defiance Large Cap ex-Mag 7 ETF (XMAG) has an implied analyst target price of $22.44, indicating a potential upside of 10.17% from its current trading price of $20.37.
Notable Holdings with Upside Potential: Key underlying holdings such as Veeva Systems Inc, Dominion Energy Inc, and Carlisle Companies Inc show significant upside potential based on analysts' target prices, suggesting optimism about their future performance.
BlackRock Predicts AI Expansion Will Maintain Magnificent 7's Appeal in 2026
BlackRock's AI Outlook: BlackRock emphasizes that artificial intelligence is not just a tech trend but a macroeconomic force that will shape growth, inflation, and market leadership, predicting global AI capital expenditure could reach $5 trillion to $8 trillion by 2030, primarily driven by the U.S.
Inflation and Debt Concerns: The firm forecasts that due to increased government and corporate debt for AI investments, a return to sub-2% long-term yields is unlikely, leading to structurally higher term premia and a bond market more vulnerable to shocks.
Stock Market Dynamics: BlackRock advises that diversifying away from U.S. megacap tech is now an active bet against the main driver of global growth, as the concentration of market power in a few tech companies reflects the current economic landscape.
Risks of Misplaced Diversification: The asset manager warns that many portfolios perceived as diversified are not, as shifting capital away from AI-linked assets may not provide the expected risk reduction, especially if the AI sector experiences a downturn.
Does Donald Trump want a recession? His ‘reign of tariffs’ could deliver one.
Impact of Tariff Policies: President Trump's ongoing tariff policies may lead the U.S. economy towards a recession, undermining previous optimistic forecasts.
Economic Outlook: The potential consequences of these tariffs have diminished expectations for a prosperous economic period in the upcoming years.
The 'new kids on the block' for AI trade investors
Impact of DeepSeek on Tech Stocks: China's AI model, DeepSeek, has caused a decline in tech stocks as it competes with Silicon Valley leaders, prompting investors to reassess their strategies in the AI sector.
Investment Insights from Sylvia Jablonski: Jablonski emphasizes the importance of strategic investments in tech and AI stocks during market dips, highlighting Microsoft as a strong player and suggesting that quantum computing will play a vital role in the future of AI.
How sidestepping Big Tech has paid off lately in these stock ETFs
Equity Strategies Performance: This week's ETF Wrap highlights equity strategies that have outperformed the Big Tech fund and the popular QQQ ETF in 2025 and over the past month, amidst concerns about heavy investments in large-cap stocks.
Feedback and Social Media: Readers are encouraged to provide feedback via email or follow the authors on social media platforms for updates.
Big Tech ETF on pace to snap weekly winning streak amid S&P 500 breadth worries
Market Analysis: This week's ETF Wrap discusses the risks associated with narrow breadth in the S&P 500, highlighting the struggles of U.S. stocks following the Federal Reserve's recent policy meeting.
Feedback and Contact Information: Readers are encouraged to provide feedback and tips via email or follow the authors on social media platforms for updates.
The Math Shows XMAG Can Go To $22
ETF Analyst Target Price Insights: The Defiance Large Cap ex-Mag 7 ETF (XMAG) has an implied analyst target price of $22.44, indicating a potential upside of 10.17% from its current trading price of $20.37.
Notable Holdings with Upside Potential: Key underlying holdings such as Veeva Systems Inc, Dominion Energy Inc, and Carlisle Companies Inc show significant upside potential based on analysts' target prices, suggesting optimism about their future performance.
