BlackRock Downgrades Emerging Market Stocks to Neutral on AI Concentration Risk

According to BlackRock's mid-year 2026 global investment outlook released on June 30, the asset manager downgraded its rating on emerging market stocks from "overweight" to "neutral" for the next 6-12 months, citing concentrated artificial intelligence risks. The report highlighted that markets such as South Korea, which are heavily dependent on AI-related companies, face particular risks.
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