In its recently released 2025 Global Outlook report, BlackRock Investment Institute emphasizes the need for dynamic portfolio construction to navigate evolving market conditions.

The report urges investors to reconsider a neutral asset allocation strategy, citing an unstable long-term trend and shifting market dynamics.

As benchmark indexes evolve, some sectors are experiencing significant growth while others are contracting, challenging traditional investing principles like the 60/40 stocks-to-bonds mix.

A positive outlook for U.S. stocks is bolstered by potential tax cuts and a regulatory environment that is becoming more favorable.

Corporate strength in the U.S. is expected to remain robust, with anticipated earnings growth despite a potential slight economic slowdown or sustained high interest rates.

BlackRock highlights the U.S. stock market as particularly attractive due to its ability to capitalize on mega trends driving corporate earnings, especially in artificial intelligence.

The report maintains an overweight position on U.S. equities, suggesting that the AI theme will increasingly benefit U.S. stocks compared to international markets, including Europe.

To access transformations in the current investment landscape, BlackRock advocates broadening investment horizons to include private markets, particularly private credit and infrastructure.

Private markets are seen as a vital avenue for exposure to early-stage growth companies in AI and critical infrastructure projects, with non-bank lenders expected to play a key financing role.

Assets under management in private markets are projected to double by 2029 from 2023 levels, underscoring the growing significance of these investments.