r/WallstreetWhales • u/EmployerSea452 • 1d ago
DISCUSSION BlackRock, the world's largest asset manager just told investors to reduce their exposure to US stocks citing AI volatility and rising yields.
79
u/SpecialistAssociate7 1d ago edited 1d ago
Blackrock influencing a selloff so they can buy at a discount?
24
u/skellis 1d ago
They’re short
12
u/da_mess 1d ago
That would be a huge SEC violation
46
u/vsmack 1d ago
Well not like you get punished for that any more
5
u/da_mess 1d ago
Morgan Stanley got a $249 million fine for exactly this two years back
24
u/tuxedo911 1d ago
Since that enforcement the president, SEC chair, and heck even the number of SEC board members have changed.
11
7
u/DarkFantom 1d ago
Huh? You mean the company that made a net income of 13.4 Billion dollars in 2024? At that price point, it's simply the cost of doing business.
2
u/da_mess 1d ago edited 1d ago
They returned 100% of the profits earned plus paid a 50% penalty.
You don't assess penalties based on what a firm can afford. You tie it directly to the damage done along with penalties allowed by law.
1
u/AddanDeith 19h ago
That's actually not true. Many fines are hard capped.
1
u/da_mess 16h ago edited 16h ago
Not for trading against your clients. Clients can get 100% of lost profits back plus damages.
If you're referring to the 3 tier SEC fines, they cap out at $1m for entities (well below the MS damages i ref'd). I'm not referring to that. I'm referring to damages awarded by a court.
Edit: spelling
1
0
9
4
u/cpc985 1d ago
$50 fine and back to business
3
u/da_mess 1d ago
No. $249 million two years back assessed to Morgan Stanley https://www.sec.gov/newsroom/press-releases/2024-6
3
u/Exquisite-Load8654 1d ago
Is 249 million a staggering amount of money for Morgan Stanley? How much did they make off breaking the rules?
2
u/da_mess 1d ago
They had to give up 100% of the damages they caused and then the courts charged them 50% more in civil penalties.
That's fair and reasonable.
Seems like you all want the bank to fail from penalties. Recall what happened when Lehman failed. Fair and reasonable is what you want.
2
u/Exquisite-Load8654 1d ago
That’s a surprisingly harsh penalty. Usually the penalties are much more lax. Morgan Stanley needs to improve their network 😃.
2
u/millionflame85 1d ago
I am not replying to be contrarian, but a fine like 250 million can be miniscule for the potential profit they can reap from such manipulation
1
2
12
u/kramit 1d ago
Picture with no source, amazing research.
3
1
27
u/ArkAngelEV 1d ago
when you remember that Jim Cramer cried out to BUY BUY BUY Lehman Brothers one day before they went to 0;
Don’t be afraid when they tell you to sell. Be afraid when they excitedly tell you to buy.
10
u/Consistent_Panda5891 1d ago
To be fair they have entered in short position... In this choppy market everything drops except index magically afloat till midterms
5
u/Toxic_Lithium 1d ago
The DOW is 50,000 dollars!!! Don’t you know!!!!
2
u/Consistent_Panda5891 1d ago
And amd lost 600$(few months later analysts have changed from 12y BUY to SELL at 280....) A lot of room to falll
3
u/Relevant-Doctor187 1d ago
In 2006 there was an AM radio station in Dallas that told seniors to get out of stocks. They knew something we didn’t.
2
u/pebbleproblems 1d ago
Ppl were debating this stuff since the 70s. Bernie sanders opposed Gramm-Leach-Bliley Act in 1999
1
1
u/321654987321654987 1d ago
Or just don't assume you can really ever know what these big dogs are thinking, they will never share all their true thoughts.
9
u/kuro-ondskan 1d ago
Blackrock is known for spreading fake news that helps them crash the stock market so they can buy cheaper.
7
u/Unfair-Earth-9528 1d ago
On October 12, 2026, BlackRock Investment Institute announced that it was:
Reducing its U.S. stock allocation from overweight to neutral.
Increasing its preference for U.S. Treasury bonds, particularly shorter-term Treasuries.
Managing potential volatility associated with AI investment, while maintaining a positive long-term outlook on artificial intelligence.
6
2
9
5
u/Affectionate-Panic-1 1d ago
Source? I doubt Blackrock would make such a statement, though maybe one of their employees did.
2
u/YngFinanceJourney 1d ago
I'm still hesitant on the statement alone, but just as and information gatherer heres a link to their article. https://finance.yahoo.com/markets/article/why-blackrock-is-suddenly-more-bearish-on-stocks-172414647.html
6
u/2xfun 1d ago
Translations: a war is coming get out now before the crash
2
u/Pepenillo198 1d ago
Why would you listen to this weasels? Do you really think they care for your investments?
1
2
u/Keletas 1d ago
If there is a crash coming, last thing they will do is to tell you before it happens. These people ARE the market, nothing happens without their direct involvement.
2
u/d4electro 1d ago
Not necessarily, rather than trying to avoid it you can try to soften the landing
BlackRock can easily divest their funds from AI and US stock, but if their clients lose all their money on them during a crash they won't have money to invest on BlackRock either
2
u/Keletas 1d ago
You don’t “lose your money” during a crash, unless you sell. If they tell you to sell before the crash, then you’re sitting in cash and they’re not guaranteed you’ll deploy again in their coffers. But guess what happens if you absorb the crash and you’re down -50%+? You stick there with them until it recovers. For you it’s almost a life commitment, for them it’s another Monday. And if you decide to leave, they’ll happily scoop your shares for Pennie’s on the dollar.
3
u/d4electro 1d ago
The stock market isn't gonna recover for a decade and the major stocks never will recover because their valuation is simply absurd
I don't think BlackRock is gonna scoop up the crash nor short the market, it's not their investment strategy they're not high risk investors quite the opposite
They see a crash as probable and don't want them or their clients to be exposed, it's not out of goodness it's self-preservation
1
1
u/Upstairs-Doughnut323 1d ago
I agree but the midterms are going to be a nightmare and Trump will continue his fraud. Get out before end of year
1
u/Keletas 1d ago
I have the same feeling. Got out right after the first leg up during Iran shitshow in March. From there I scalped with great profits until late June. Then I started getting chopped out continuously and I am just sitting this out for the time being.. in hindsight, I did not miss much as many of my holdings are flat in the last 4 months.. but the biggest gain its peace of mind. Even if I don't buy in, for this year I am way above my target.
6
u/Upstairs-Doughnut323 1d ago
Crash incoming … they have rigged the market as long as they can. No one is buying this high
3
u/HighlightHappy1804 23h ago
You wouldnt see posts of an impending collapse unless it was worth their while. And it is — they literally make all of their money off of sowing market volatility.
3
3
u/spez_eats_nazi_ass 1d ago
Got my shorts in and set asside my pile for buying back in later back in early September. Let’s fucking go!
2
u/NeighborhoodBest2944 21h ago
Don’t blink sitting there crash cause it’s going to extremely brief. Good luck timing exit and entry. You can do it!
1
u/Plus-Enthusiasm6965 14h ago
You really think they’re gonna tell you to sell the top before they crash it? Be so fucking fr.
Yal sell into their buys. You chase ATH breakout. They dump in your fucking face….
That’s when it crashes
9
4
u/horned-creature 1d ago
2 companies with big AI investments also have filed for bankruptcy this week ( getty images and character AI)...
6
u/Ancient_Bobcat_9150 1d ago
They also reiterated their long-term conviction in AI fundamentals, particularly in critical infrastructure and companies with strong earnings power. It is just short-term volatility.
I haven't found anything about them suggesting reducing US exposure. Do you have a link? I found statements that they wanted to overweight emerging markets)
1
3
3
u/plasticbug 1d ago
The reason smart people often end up poorer than reasonably intelligent people is that they try to guess the market... Although I guess this is the wrong sub to preach that in :-)
3
u/TechWorld510 1d ago
Look at the market, we don’t need a source. Read in between the lines. Shits fucked. Hopefully 10 year doesn’t hit 5.5-6
3
u/equinoxxxxxxxxxx 1d ago
I'm with Blackrock for passive index investing, not for active investment advice.
3
3
6
u/Not_Sure_68 1d ago edited 1d ago
...and despite the fact that they're complete garbage human beings at blackrock ...Larry Fink...gak.
They're not wrong. AI circular funding is the last thing propping US equities up. Breadth flat out sucks, liquidity is drying up, and the higher bond yields have already come for every single sector...except energy and information technology. Spoiler alert only one of those two is immune...at least temporarily and it ain't technology.
Edit: The SPY has been running on vapors for quite some while. The Nasdaq is already down 2.14% for the week and the diamonds are down 1.42% for the month. It seems fairly obvious the big four tech names can't keep holding up the entire equity market much longer.
4
u/Ebonvvings 1d ago
Yes, they can
7
u/Not_Sure_68 1d ago
Okay...well you've made a very compelling case. ;)
...and here I am thinking all time highs on rapidly falling volume is a bad thing. Thanks random guy on the Internet.
0
u/AmbiguousIntention 14h ago
Maybe look at some earning reports and report back…
1
u/Not_Sure_68 14h ago
I assume you'd prefer I focus on *projected* PEG ratios? I'm well aware what leasebacks and circular financing have made forward year earnings look like for these companies. I'm also well aware that token pricing power has fallen by 41% in 2026 and that Anthropic and OpenAI are the two points of failure in all these projections.
...ya know the two private companies with a combined revenue of $130b tops that keep pushing their IPOs because they don't want anyone to have a look at their books.
1
u/ParisianNomad 8h ago
The 2.14% move shows how fragile things get when a handful of AI names carry the index. If breadth stays this thin and yields keep climbing, BlackRock's call looks reasonable regardless of what you think about Fink.
1
-2
u/professormarvel 23h ago
Do you know anyone that works there? What did Larry Fink do? Garbage take
2
u/Not_Sure_68 11h ago
ummm...he bought up entire neighborhoods of residential housing with currency borrowed at near zero interest driving up home prices and leading to the average age of a first time home buyer in the US to be FORTY FREAKING YEARS OF AGE.
Now, I own a home, and I'd like my millennial sons to enjoy the same, but median US home prices...now at a staggering $440k have risen many times faster than wages. This is a complete travesty and it's going to lead to societal collapse if it remains unaddressed. We simply cannot lock young people out of home ownership. Now with 30y mortgage rates around 7.5% there's almost no chance a 25yo couple out of college will be buying a home under their own steam anytime soon. This is truly sad.
Blackrock is also the sponsor of ESG in the US btw. If you wonder why US companies seem economically suicidal at times, it's because they're trying to raise their ESG score so they can get a pat on the head from Larry.
0
u/professormarvel 3h ago
He personally did? Or the firm did because they thought it was a good investment for shareholders? Also I'm just assuming what you are saying is true for arguments sake, it absolutely isn't. That's been a red herring talking point for a long time, vast majority of multi property owners are mom and pops. I think there are some isolated neighborhoods where institutions own majority of properties (atlanta iirc). Blaming Larry Fink personally for the cost of housing is some tin foil hat level shit.
No idea what you are talking about with the ESG thing, investment firms only started offering that stuff because there was a market for it. Pretty much gone now with the trump admin in charge.
2
2
2
u/Haxxxxx 1d ago
Why no source? Just a headline with no source - so annoying.
6
1
2
2
2
2
2
u/Critical-Belt342 22h ago
RIGHTTTT... Because the thing they want to do the most is give everyone else advice to "help"
2
u/Diamond1africa 1d ago
JPM too, it's almost like they want to increase their positions at a nice discount
1
u/Pugsly007 1d ago
Or they’re right and protecting their customers. With the Schiller Cape being so high don’t you take a pause and really look at the full market?
1
0
u/Dazzling-Cheetah5951 1d ago
A huge crash is coming, even a blind person can see it. The only thing keeping it up is Don's con job manipulating it for midterms and the war.
3
u/Diamond1africa 1d ago
Ok buddy, I've worked in finance for over 20 years and have heard about a big crash every year since 2008. Yes, anyone with financial/economic literacy sees a debt crisis looming, but you can't predict it.
1
1
1
1
1
1
1
1
u/Consistent_Panda5891 1d ago edited 1d ago
Chyna, the WINNER... Europe insane inflation and no growth. Literally there is no other market than USA now to make $. Kospi is overvalued AF as well as Japan with currency issue
1
1
1
1
1
u/Mindless_Ad5500 1d ago
Don’t trust any of these assholes. Buy and hold good quality companies and ignore all of this shit. They want you to fear. They want you to sell. They will buy your shares when you are shitting the bed.
1
1
1
u/andtoig 1d ago
This is misleading and wrong. They went from an overweight to an equal weight. In doing so, they specifically said that they have long-term conviction in the US.
If you don't understand, portfolio waitings, you probably should read up before acting on anything that you read ... Well anywhere
1
1
u/Such_Candidate_1548 1d ago
My international indexes down 1.2% in the last month and US indexes are up 2.25% in the last month which is a pretty large divergence between the two imo. In the short term I could see allocating more to international to buy low. That being said, definitely don't want to make a decision because Blackrock says so
1
1
1
1
u/Jaded-Recording-2163 1d ago
What’s safe if the world economy goes bad? Are companies like Vanguard safe?
1
1
1
u/Roadblocks1974 1d ago
Doom and Gloom, love it. Been alive 53 years and it’s the same stuff. Going to crash! Get out, sell, meanwhile it’s always gone up. All the years. Buy the dip chicken tits.
1
1
1
u/AdWonderful9228 1d ago
Then why have they been increasing the exposure in stocks in the last couple of months 🤔
1
1
u/Just_Candle_315 1d ago
sounds like blackrock wants people to sell stocks because equities are about to jump and if people sell blackrock can buy them on the cheap
1
1
1
u/powerexcess 20h ago
Research for asset managers and bank is god damn noise. They post stuff every day or week, and they always have to say something. On every fund i worked we did not act on it.
Stop sharing damn nonsense.
And this candlestick chart is all messed up. Have some respect for the tools.
1
u/banzaijacky 19h ago
u/RemindMeBot 3 months
1
u/RemindMeBot 19h ago edited 19h ago
I will be messaging you in 3 months on 2027-01-14 07:00:01 UTC to remind you of this link
2 OTHERS CLICKED THIS LINK to send a PM to also be reminded and to reduce spam.
Parent commenter can delete this message to hide from others.
Info Custom Your Reminders Feedback
1
1
1
u/smooth-vegetable-936 14h ago
Crash is possible but going up as well. So which one is it going to be? Nobody knows
1
1
1
1
u/Difficult_Dog9572 1d ago
I'm not stock literate that much and this post just came up on my suggested feed, could somebody who understands what this means tell me for the future foreseeably? Greatly appreciate it
3
u/Short_Search_5337 1d ago
Blackrock wants you to sell
2
1
1
u/Difficult_Dog9572 1d ago
Is there a probable reason why and what will the consequences for the market/US be?
1
1
u/d4electro 1d ago
Presumably they themselves have already reduced their exposure to risky stocks and want their clients to do the same to avoid losing all the money in the crash and be left with nothing to invest in BlackRock
If you know the crash is coming it might be wiser to try and reduce your damages rather than try and delay it
1
1
1
u/Shoddy_Front_2582 1d ago
Black rock wants you to sell so they can buy cheaply like they did back in 09 with all the real estate
1
u/AdMother6743 1d ago
So what am I buying this time around and where should I be buying my stuff? (Legitimate question here)
2
1
0
0
76
u/Emergency_Froyo_3030 1d ago
Worlds largest…….hedge fund market manipulator