Timing Mismatch Between AI Spend and Returns

AI investment, evolving earnings leadership, and shifting global dynamics are redefining stock market trends as investors enter 2026. Companies are deploying unprecedented capital toward data centers, compute, and productivity-enhancing technologies, while rate cuts and supply-chain realignment reshape the macro backdrop. These forces are changing how fundamentals, valuations, and sector growth patterns show up in equity markets.

In this episode of The Bid, host Oscar Pulido speaks with Carrie King, Global CIO of BlackRock’s Fundamental Equities group, about the major drivers influencing the 2026 equity outlook. Carrie breaks down why high-level valuations may mask improved corporate quality, how AI-related investment is broadening beyond semiconductors, and why the gap between megacap earnings and the rest of the market may begin to narrow.

They also explore how global monetary easing is benefiting emerging markets, why Japan’s structural reforms continue to support its equity story, and how diversification is becoming more challenging in a market shaped by a few powerful megaforces. Carrie explains what this means for sector positioning, volatility, and where long-term investors may find underappreciated opportunities.

Key moments in this episode:

00:00 Introduction: Can Stocks Maintain Momentum in 2026?

03:29 AI's Dominance in the Market

09:34 Global Investment Trends and Opportunities

12:06 Earnings Growth and Sector Performance

15:36 Diversification Strategies for Investors

17:10 New Year's Resolutions for Investors

18:59 Conclusion and Upcoming Episodes

Key insights include:

·      How AI-driven spending is reshaping earnings patterns and stock market trends

·      Why equity valuations may be better anchored than headlines suggest

·      Where the “other 493” may see accelerating earnings growth

·      How global rate cuts and supply-chain shifts are supporting EM and Japan

·      Why diversification requires new approaches in a megaforce-driven market

·      Which sectors—industrials, travel, and healthcare—may offer overlooked potential

stock market trends, AI investing, megaforces, capital markets, equity markets, global investing, sector rotation

Sources:

Written Disclosures In Episode Description:

This content is for informational purposes only and is not an offer or a solicitation. Reliance upon information in this material is at the sole discretion of the listener. Reference to any company or investment strategy mentioned is for illustrative purposes only and not investment advice. In the UK and non-European Economic Area countries, this is authorized and regulated by the Financial Conduct Authority. In the European Economic Area, this is authorized and regulated by the Netherlands Authority for the Financial Markets. For full disclosures, visit blackrock.com/corporate/compliance/bid-disclosures.

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