BlackRock has identified Spain as its priority market for channeling equity investments during the second half of 2026, relying on the dynamism of its domestic activity, which it considers "the most solid in the region."
"Spain remains our preferred country for equity exposure. While valuations appear less attractive compared to other countries, its domestic growth remains the most solid in the region," the entity states in its outlook for the second half of 2026.
In its stock market strategy, the asset manager places the Spanish stock market among its main focuses, alongside the financial sector, infrastructure, industry, and materials companies on a global scale.
The firm details that Europe is strengthening "resilience" in key economic areas, while the United States remains the core of artificial intelligence investment and China maintains a leading position on several fronts of the energy transition and physical artificial intelligence.
"We believe this shift from 'just in time' to 'just in case' is one of the most important investment themes in the region. This shift is creating a multi-year investment cycle focused on four areas: defense, energy, technology, and capital. The common denominator: the need to reduce vulnerabilities, enhance security, and foster greater growth," it explains regarding the European position.
Despite this, BlackRock opts to maintain a neutral stance on the European market as a whole: "For Europe to outperform, more business-friendly policies would need to be adopted and capital markets deepened."
In contrast, the firm favors an overweight position in the United States, relying on "solid corporate earnings" linked to the advancement of artificial intelligence and a macroeconomic environment it considers favorable.
For other markets, both emerging ones like Japan or China, the asset manager's view is also neutral for the second half of the year, although it detects investment niches in infrastructure projects in Latin America associated with the development of artificial intelligence.
Regarding the increase in defense spending, BlackRock emphasizes that returns "will depend on the speed and quality of capital investment" in a scenario where the political attention of key countries, such as Spain, France, and Italy, "is diverted towards general elections."
At the same time, the entity identifies opportunities in US equities, especially in infrastructure linked to artificial intelligence, in active management, and in activities where bottlenecks exist.
"Export controls, restrictions on access to models, and limitations on granting permits can slow adoption or change who captures value," it indicates regarding artificial intelligence.
In the fixed income arena, BlackRock maintains an overweight bet on short- and medium-term European bonds, considering that the market is pricing in restrictive interest rates around 3% for several years. "We believe that is excessive," it points out in the report.