Diversification Mirage In Plain Sight

Jean Boivin, PhD1.44K FollowersFollow5ShareSavePlay(9min)CommentsSummaryWe see the diversification mirage - one of our 2026 Outlook themes - playing out in real time with a sharp spike in global bond yields.The Nasdaq lost 2% as AI-linked capital spending concerns hurt tech stocks. U.S. 10-year yields hit a three-month high amid a global bond selloff.We see the potential for a Bank of Japan rate hike and Bank of England rate cut. Delayed U.S. inflation and jobs data are likely to be noisy. designer491/iStock via Getty Images Transcript With only a handful of mega forces driving returns, we think there is no such thing as a neutral portfolio allocation. And rising bond yields across developed market economies mean traditional diversifiers like long-term Treasuries offerThis article was written byJean Boivin, PhD1.44K FollowersFollowJean Boivin, PhD, is head of economic and markets research at the Blackrock Investment Institute. Prior to joining BlackRock, Dr. Boivin served as deputy governor of the Bank of Canada and as Finance Canada’s associate deputy minister and G7/G20 deputy. He has taught at Columbia Business School and HEC Montreal. He writes about the global economy, global markets and policy.