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In 2025, global stocks delivered strong returns despite periodic pullbacks, underscoring the value of staying invested in a diversified portfolio. Bonds once again acted as stabilizers, with Fed rate cuts boosting fixed income performance relative to cash. Looking ahead to 2026, many investors remain constructive on equities, while seeking balance through bonds, alternatives, and option-based strategies.
The 2026 market outlook is shaped by AI, record capital expenditure and rising leverage. Jean Boivin of the BlackRock Investment Institute joins The Bid to unpack why “micro is macro,” how AI investing and megaforces are driving growth, what leveraging up means for debt markets, and why diversification may be a mirage.
In 2025, global stocks delivered strong returns despite periodic pullbacks, underscoring the value of staying invested in a diversified portfolio. Bonds once again acted as stabilizers, with Fed rate cuts boosting fixed income performance relative to cash. Looking ahead to 2026, many investors remain constructive on equities, while seeking balance through bonds, alternatives, and option-based strategies.