BlackRock Investment Institute with the cautionary heads up:
- “About half of expected earnings growth is tied to mega caps … according to LSEG data, where the artificial intelligence (AI) mega force is well represented. Backing those out … expectations for broad equities are muted and overly optimistic, in our view,”
- “Broad equities have started to adjust to the new regime of greater volatility, but don’t fully reflect the macro damage we expect,”