BlackRock Executive Warns Investors to Prepare for a New Market Phase

Wei Li, global chief investment strategist at BlackRock, is urging investors to prepare for a potential market shakeup as three massive US tech IPOs — SpaceX, OpenAI, and Anthropic — prepare to hit the public markets this year.

The three listings could collectively drain about $200 billion from the market, Li warned, creating a near‑term liquidity test. SpaceX is expected to go public in June, followed by OpenAI and Anthropic later in 2026.

“That is happening against the backdrop of corporates previously not issuing a lot of debt and now issuing more debt,” Li said. “So that’s, again, draining liquidity and financing from the market.”

Despite the warning, Li remains positive on US equities, driven by strong earnings momentum tied to AI infrastructure spending, which she estimates could reach $6 trillion by the end of the decade. She noted that earnings estimates for the US IT sector have been revised up to 44% growth for 2026, up from 30% at the start of the year.

However, rising interest rates and persistent inflation — exacerbated by the Iran war and supply chain disruptions — pose risks. Li said US Treasury bonds are no longer serving as effective portfolio diversifiers, as yields have pushed higher even during market stress.

Investors should be selective, Li advised, favoring high‑quality short‑duration bonds and equities over long‑dated government debt. “It’s not a rising tide lifting all boats,” she said.

Also Read:

Saudi Arabia Reports 2.4% Increase in Construction Costs for April

The Invisible Work Behind Hajj: How Split-Second Decisions Keep Millions Safe