While BlackRock believes the U.S. will remain the world’s innovation hub and its economy is well-positioned for medium-term resilience, the near-term outlook could prove volatile.
- The firm noted that global investors are beginning to reassess U.S. strength and are gradually diversifying away from American assets.
- At the start of the year, foreign holdings of U.S. investments were at record highs, but fund flow data now suggest a shift is underway.
Rick Rieder, BlackRock’s chief investment officer for global fixed income:
- “We see this capital reallocation as a gradual, ongoing trend driven by key global macroeconomic forces”
Diversification trend has been building for some time, particularly in wealth and asset management, and has been reinforced by policy moves like Trump’s tariffs.
BlackRock is the world's largest asset manager
