BlackRock lauds AI as ‘mega force’ to drive returns
AI could prove to be a boon for investors looking for gains in today's “unusual” market. Global investment titan BlackRock, which manages some $10 trillion in assets, has declared artificial intelligence a “mega force ” that could create significant returns for investors in today’s “unusual” market. In its mid-year outlook report, the BlackRock Investment Institute detailed their thesis for increased investment in AI — pointing to multiple “disruptive” themes that could see the sector grow rapidly over the coming years. S&P market cap vs relative performance from 1990. Source: BlackRock. The report drew special attention to the fact that gains in the S&P 500 — the index that tracks the 500 largest companies in the United States — have become increasingly concentrated in a handful of tech stocks. The firm says investment in AI is a good way to capitalize on this concentration. "We think this unusual equity market shows a mega force like AI can be a big driver of retur...