Explore Investment Directions Spring 2026 | BlackRock

A man is walking across a crosswalk

Capital at risk. The value of investments and the income from them can fall as well as rise and are not guaranteed. Investors may not get back the amount originally invested.

Key takeaways

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Growth: durability at scale

Amid elevated uncertainty, we selectively add to risk by leaning into structural themes and assets with strong fundamentals.

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Resilience: diversification without directionality

With heightened risks and traditional correlations less reliable, we lean into portfolio resilience drawing on a broader set of diversifiers.

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Income: seeking reliability in an uncertain regime

As clients prioritise stable income, we lean into unconstrained strategies for efficiency, fixed maturity bonds for duration, and equity high income in a multi-asset context.

Geopolitical uncertainty has been at the forefront so far in 2026, driving volatility and dispersion across asset classes. In this environment, we favour staying invested but crucially taking measured risk to preserve resilience at the core of portfolios.

Hi, I’m Karim, and these are our latest views on positioning portfolios for uncertainty.

Section 1 - Growth:
Amid a volatile backdrop, we selectively tap back into risk, particularly where structural growth themes can create differentiated return potential. The AI buildout remains a key growth driver and a compelling investment theme, but with an increasing need for selectivity. An active approach allows for dynamic allocation across the AI ecosystem – from semiconductors, where earnings do remain strong, to broader opportunities across sectors and regions. In US equities, beyond AI, we like defensive equity allocations such as healthcare and areas like large-cap banks. We also like healthcare and banks in Europe, alongside companies with strong domestic revenue exposure. In emerging markets, dispersion calls for selectivity. We lean into Brazil for commodity exposure and Mexico for its attractive valuations, alongside parts of Asia given improving fundamentals and AI-related tailwinds. Finally, private markets are playing a growing role in portfolios, offering potential differentiated sources of growth and access to alternative return drivers.

Section 2 - Resilience:
Persistent uncertainty calls for increased focus on diversification and downside protection, in our view, with gold remaining our primary choice to hedge geopolitical risk. In equities, buffer strategies could help improve downside protection while enabling investors to remain invested. Amid less reliable stock-bond correlations, alternatives such as hedge funds could provide durable alpha through return dispersion and independence from market beta, alongside dynamic downside protection. Anecdotally, we note growing client interest in diversified hedge fund sleeves containing multi-strategy exposures. Finally, we take a more active approach to currency management, through hedged share classes or strategies that integrate FX considerations directly into portfolio construction. Amid a volatile backdrop, we selectively tap back into risk, particularly where structural growth themes can create differentiated return potential.

Section 3 - Income:
Income remains the primary driver of returns in fixed income and a key portfolio objective for many clients we speak to. We maintain a high-quality investment grade credit core, with a continued focus on managing duration risk, while adding more resilient, all-weather strategies, including unconstrained approaches designed to deliver consistent income with lower market sensitivity. We also tilt into certain plus sectors.
We see potential opportunities in AT1s, where we like the sector makeup, although we stress th e need for an active lens given the complexity of the market. Extending beyond fixed income, systematic income equity strategies that combine dividends and option premia can provide diversified and disciplined income streams. We also see potential selective opportunities in high-dividend equity markets. See our latest Investment Directions report for more on these exposures.

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Geopolitical uncertainty has been at the forefront so far in 2026, driving volatility and dispersion across asset classes. In this environment, we favour staying invested but crucially taking measured risk to preserve resilience at the core of portfolios."

— Karim Chedid, Head of EMEA Investment Strategy, Global Product Solutions

How we're investing for 2026:

Growth: durability at scale

Amid a volatile backdrop, we selectively tap into risk, particularly where structural growth themes can create differentiated return potential.

The big idea
AI continues to be structural trends driving growth, with opportunities expanding beyond mega-cap stocks into infrastructure and mining. Beyond AI, we favour defensive opportunities in the US and Europe, and look to emerging markets for potential diversification.

Positioning portfolios to capture opportunities around AI
AI remains a key long-term theme, and opportunities are broadening beyond mega-cap names into a more disperse set of companies. An active approach allows for dynamic allocation across the AI ecosystem – from semiconductors, where earnings remain strong, to broader opportunities across sectors and regions. The energy sector has been in focus recently, given the nature of the geopolitical shock to markets. Valuations have risen alongside broader energy prices, as reflected in longer-term futures, but we don’t see energy as overvalued. With many EMEA portfolios still underweight to both energy and AI, there is room for investors to position portfolios to capture potential growth from these exposures.

Positioning portfolios to capture opportunities beyond AI
We favour healthcare and large-cap banks both in the US and Europe. In the latter, we also lean into companies with strong domestic revenue exposure. In emerging markets, dispersion calls for selectivity. We lean into Brazil for commodity exposure and Mexico for its attractive valuations, alongside parts of Asia given improving fundamentals and AI-related tailwinds. Finally, private markets are playing a growing role in portfolios, offering potential differentiated sources of growth and access to alternative return drivers.

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Resilience: diversification without directionality

Persistent uncertainty calls for increased focus on broadening diversification and managing downside risk.

The big idea
Resilience is becoming a core portfolio objective amid elevated uncertainty. With less reliable stock-bond correlations, building resilient portfolios with diversified return drivers – beyond the traditional 60/40 – looks increasingly critical. We focus on managing near-term geopolitical and inflation risks, while building broader resilience to weather future potential shocks.

Positioning portfolios for uncertainty
In equities, buffer strategies could help improve downside protection alongside hedge funds for durable market volatility. Gold remains our favoured geopolitical risk hedge. Finally, we take an active approach to currency risk through hedged share classes and strategies that integrate FX management directly.

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Income: seeking reliability in an uncertain regime

Seeking stable income has become central to many investors in the current market environment.

The big idea
Duration today looks less reliable as a diversifier, with income remaining the primary driver of returns for fixed income as an asset class.

We maintain a high-quality investment grade credit core, with a continued focus on managing duration risk, while adding more resilient, all-weather strategies, including unconstrained approaches designed to deliver consistent income with lower market sensitivity.

We also tilt into certain plus sectors. We see potential opportunities in AT1s, where we like the sector makeup, although we stress selectivity and maintaining an active lens remain essential.

Extending beyond fixed income, systematic equity income strategies that combine dividends and option premia can provide diversified and disciplined income streams. We also see potential selective opportunities in high-dividend equity markets.

Positioning portfolios to capture income
We lean into unconstrained strategies for efficiency, fixed maturity bonds to manage duration, and equity income exposures for a multi-asset approach to income investing.

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