On September 15, BlackRock renewed its recommendation to overweight emerging market stocks, believing that access to scarce resources needed for the AI boom and strong earnings will help them outperform the market. Strategists from BlackRock's research department, including Wei Li, noted in a Monday report that South Korea and Taiwan, China, are at the core of the semiconductor and memory chip supply chains, while Latin American markets offer investment opportunities in commodities and infrastructure needed for AI construction. BlackRock expects that investment growth in this technology sector will enhance the value of these scarce resources and support corporate earnings. This recommendation marks a shift in BlackRock's stance since June, when the firm downgraded emerging market stocks from neutral to overweight due to concerns that AI concentration and leverage issues, particularly in the South Korean market, were undermining the risk-reward ratio. BlackRock stated that the deleveraging following the sharp sell-off in South Korean stocks in July has provided favorable conditions for renewing overweight positions.