Models Video September 2026
Hi, I'm Tushar Yadava, and I'm here to give you a quick update on the latest changes to our asset allocation views from the BlackRock Model Portfolios, and why we believe they make sense in the current market environment.
In a market prone to headline risk and leadership rotations, we prefer to stay modestly overweight stocks relative to bonds. (on screen: Consider maintaining a slight preference for equities over bonds)
Our highest-conviction directional views remain unchanged – but with tempered magnitude as burgeoning price volatility increases risk concentrations. This includes our mix of thematic tilts, like standalone momentum – which we prefer to put on the sideline for now, while also reducing conviction in core AI & global defense stocks, as we prefer to lean into US large caps benefiting from AI adoption in the near term.
We are seeking to continue broadening the bond toolkit in our portfolios
(on screen: Consider active core alternatives in addition to maintaining shorter duration) We still see bonds as an important ballast, but not one we want to rely on through duration alone. With geopolitical uncertainty elevated, headline inflation still prone to flare-ups and the Fed facing a difficult reaction function, we think it makes sense to keep a modest duration underweight while broadening the sources of return inside the bond sleeve. To us, that means moving beyond index beta in mortgages, looking to global sovereigns, and using active mortgages, convertibles and liquid alternatives altogether to create a more diversified fixed income toolkit. Our objective is not to use bonds as a primary return driver, but to build a more flexible set of diversifiers around an equity book where our highest-conviction risk views remain.
Finally, as international opportunities improve more broadly, consider reducing US equity overweights to neutral (on screen: Actively managed, rotational approaches can capture dispersion across international markets)
In both the equity and fixed income sides of the portfolio, we are leaning further into active selection in our international approach. Recent earnings revisions have made the regional picture less one-sided, narrowing the advantage that supported a U.S. tilt. At the same time, dispersion across countries has widened, creating a more attractive opportunity for an in-house country rotation strategy that can move with fundamentals, macro conditions and sentiment between regular portfolio rebalances.
For more information, please check out our latest moves on the advisor center, or reach out to your BlackRock market teams. Thanks for watching.
SPOKEN and VISUAL:
The views expressed herein relate to the BlackRock Model Portfolios as of 09/21/2026. Information shown represents the current investment strategy and philosophy of BlackRock, the model portfolio provider, and is subject to change. There is no guarantee that any forecasts made will come to pass.
JUST VISUAL:
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International investing involves risks, including risks related to foreign currency, limited liquidity, less government regulation and the possibility of substantial volatility due to adverse political, economic or other developments. These risks often are heightened for investments in emerging/developing markets and in concentrations of single countries.
Fixed income risks include interest-rate and credit risk. Typically, when interest rates rise, there is a corresponding decline in the value of debt securities. Credit risk refers to the possibility that the debt issuer will not be able to make principal and interest payments. Mortgage-backed securities ("MBS") and commercial mortgage-backed securities ("CMBS") are subject to prepayment and extension risk and therefore react differently to changes in interest rates than other bonds. Small movements in interest rates may quickly and significantly reduce the value of certain mortgage-backed securities.
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