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The world’s largest asset manager turns bullish on UK stocks while continuing to “lean into” AI, saying a transformation akin to past technological revolutions is gearing up.
BlackRock, a company with US$10 trillion in assets under management – says it is “leaning into risk” assets that include UK stocks.
“We go overweight UK equities,” says Jean Boivin, Head of BlackRock Investment Institute. “We see the Labour Party’s landslide UK election victory increasing the likelihood of a two-term government.”
This leads BlackRock to see the potential for long-term policy implementation, which should bring relative political stability.
Above: Since 2020, the FTSE 100 (dark blue) has underperformed the S&P 500 (orange) and Germany’s DAX.
“We think perceived stability can help improve sentiment – especially among foreign investors who own more than half of UK shares,” says Boivin.
UK equity markets have underperformed…
