Investors may need to rethink the most basic principles of portfolio management as artificial intelligence, geopolitical tensions and other structural shifts reshape markets, according to the BlackRock Investment Institute. The asset manager argued that traditional portfolio construction methods are becoming less effective in an investment environment increasingly driven by what it calls "mega for...
Investors may need to rethink the most basic principles of portfolio management as artificial intelligence, geopolitical tensions and other structural shifts reshape markets, according to the BlackRock Investment Institute. The asset manager argued that traditional portfolio construction methods are becoming less effective in an investment environment increasingly driven by what it calls "mega forces" — long-term changes ranging from AI and demographic shifts to geopolitical fragmentation and the energy transition. "We think this means investors should revisit big portfolio calls more often and have an explicit plan B portfolio ready," BII strategists led by Jean Boivin said. Among its highest-conviction tactical calls, BlackRock remains bullish on assets tied to the AI boom. It favors infrastructure and equipment supporting the AI buildout, including semiconductors, power systems and data centers, arguing these areas stand to benefit regardless of which companies ultimately emerge as winners. The firm also maintains an overweight position on U.S. equities, citing resilient earnings growth and expectations that AI will continue to boost corporate profits. In emerging markets, BlackRock prefers countries that manufacture critical AI components as well as commodity exporters that could benefit from higher energy and raw-material prices. The asset manager also suggested investors look beyond where a company is listed when making investment decisions. Instead, it said, greater emphasis should be placed on understanding a company's business model and revenue drivers. "What matters more is what a company actually does and the drivers of its revenue, not the country where its stock happens to be listed," BlackRock said. On fixed income, the asset manager is steering investors away from long-duration government debt. It is underweight long-term U.S. Treasurys, noting that inflation risks and rising term premiums continue to put upward pressure on yields. It also remains und...
So far this year, semiconductors and the physical infrastructure of artificial intelligence (AI) are dominating the exchange-traded fund (ETF) scene. For example, the iShares Semiconductor ETF (NASDAQ: SOXX) is up 89% year to date. Given the intense interest -- and investments -- in AI, this makes sense. Image source: Getty Images. Semiconductors and AI reinforce each other in a tight loop. AI dep...
So far this year, semiconductors and the physical infrastructure of artificial intelligence (AI) are dominating the exchange-traded fund (ETF) scene. For example, the iShares Semiconductor ETF (NASDAQ: SOXX) is up 89% year to date. Given the intense interest -- and investments -- in AI, this makes sense. Image source: Getty Images. Semiconductors and AI reinforce each other in a tight loop. AI depends on ever more sophisticated chips to run. Now, AI is changing how chips are designed and where they're manufactured. In short, AI is designed to perform tasks that normally require human intelligence, and semiconductors are the physical devices that enable it to do so. Continue reading
Maximusnd/iStock via Getty Images • The fund posted returns of -0.14% ((Institutional shares)) and -0.09% ((Investor A shares, without sales charge)) for the first quarter of 2026. • Asset allocation was the main driver of the fund’s slight underperformance of its benchmark during the quarter. • The fund maintained its “risk-on” bias but hedged its credit exposure in the latter part of the quarter...
Maximusnd/iStock via Getty Images • The fund posted returns of -0.14% ((Institutional shares)) and -0.09% ((Investor A shares, without sales charge)) for the first quarter of 2026. • Asset allocation was the main driver of the fund’s slight underperformance of its benchmark during the quarter. • The fund maintained its “risk-on” bias but hedged its credit exposure in the latter part of the quarter through the tactical model, which helped to mitigate some of the downside. The fund had a short duration ((interest rate sensitivity)) position through the quarter, primarily via the tactical model, though it entered the second quarter with a neutral exposure. Contributors Global rates were the main contributor to performance, driven by our global cross-market rates curve strategy’s long “2s5s flattener” positions, which benefited from a narrowing of the two-year and five-year yields in February. In addition, the global cross-market inflation strategy’s long inflation breakeven ((the difference in yield between nominal U.S. Treasuries and Treasury inflation-protected securities with comparable maturities)) positions were helpful in March. Detractors Asset allocation was the main detractor, largely due to our strategic model’s overweight positioning in investment grade and high yield credit. In February, the tactical model’s short duration exposure was unhelpful. Mortgage security selection weighed on performance due to our mortgage-backed security pool selection. Further insight During the quarter, geopolitical events pushed up energy prices and weighed on fixed income as expectations of interest rate cuts were repriced. Credit spreads widened amid concerns about artificial intelligence’s impact on software and the knock-on effects in private credit. We remain constructive on credit and view these pressures as largely sentiment-driven rather than a broader credit cycle. An estimated $100 billion in additional tax refunds from the One Big Beautiful Bill Act should help the ...
Memory chipmaker shares led a rebound in South Korean stocks, demonstrating investors aren’t quite ready to throw in the towel on the artificial intelligence boom. The Kospi jumped as much as 8% after three-day drop that brought the benchmark index down 15% from a record high. Samsung Electronics Co. bounced as much as 9.1%, while SK Hynix Inc. climbed more than 14%. The dramatic AI-fueled rally t...
Memory chipmaker shares led a rebound in South Korean stocks, demonstrating investors aren’t quite ready to throw in the towel on the artificial intelligence boom. The Kospi jumped as much as 8% after three-day drop that brought the benchmark index down 15% from a record high. Samsung Electronics Co. bounced as much as 9.1%, while SK Hynix Inc. climbed more than 14%. The dramatic AI-fueled rally that had at one point lifted the Kospi up more than 100% year-to-date unraveled rapidly on Monday, triggering circuit breakers that briefly suspended trading. The downturn was exacerbated by leveraged ETFs, which magnify moves in underlying securities. Read: Leveraged ETF Goes Haywire in Korea With Wrong-Way 40% Moves “Volatility has become huge, but that is due to the change in the market structure, not due to a directional shift in the cycle,” said Lee Jongwook , an analyst at Samsung Securities Co. Lee advised investors to maintain or add to positions after the selloff.
(RTTNews) - Indian shares were modestly higher in early trade on Tuesday after Iran and Israel agreed to halt attacks against each other following a series of mutual attacks from Sunday night, which marked the most serious escalation since the ceasefire in April.
(RTTNews) - Indian shares were modestly higher in early trade on Tuesday after Iran and Israel agreed to halt attacks against each other following a series of mutual attacks from Sunday night, which marked the most serious escalation since the ceasefire in April.
Intel spent the second half of last week, between June 4 and 5, getting hammered alongside the rest of the chip sector. Then things changed on Monday, June 8. Shares of Intel (INTC) jumped about 13% to roughly $112 in early trading, one of the stock’s sharpest single-day moves of the year, after ...
Intel spent the second half of last week, between June 4 and 5, getting hammered alongside the rest of the chip sector. Then things changed on Monday, June 8. Shares of Intel (INTC) jumped about 13% to roughly $112 in early trading, one of the stock’s sharpest single-day moves of the year, after ...
Defiance Launches MUZ: The First 2X Short ETF for Micron Technology, Inc. Defiance ETFs is proud to announce the launch of the Defiance Daily Target 2X Short MU ETF (Ticker: MUZ), the newest addition to its growing suite of single-stock leveraged and inverse ETFs. MIAMI, June 09, 2026 (GLOBE NEWSWIRE) -- Defiance ETFs is proud to announce the launch of the Defiance Daily Target 2X Short MU ETF (Ti...
Defiance Launches MUZ: The First 2X Short ETF for Micron Technology, Inc. Defiance ETFs is proud to announce the launch of the Defiance Daily Target 2X Short MU ETF (Ticker: MUZ), the newest addition to its growing suite of single-stock leveraged and inverse ETFs. MIAMI, June 09, 2026 (GLOBE NEWSWIRE) -- Defiance ETFs is proud to announce the launch of the Defiance Daily Target 2X Short MU ETF (Ticker: MUZ), the newest addition to its growing suite of single-stock leveraged and inverse ETFs. MUZ