BlackRock, the firm managing $14 trillion in global assets, has released its Q2 2026 equity market outlook, which challenges the belief that sticking with what has worked will continue working. The firm's top equity strategists see a market recalibrating in real time, with the top 10 stocks in the S&P 500 now representing roughly 41% of the index, the highest concentration in over 35 years. BlackRock acknowledges that the “Magnificent 7” stocks continue to lead earnings growth in early 2026, but these same stocks are no longer leading market returns this year. However, BlackRock does not abandon U.S. stocks entirely and suggests that investors should instead consider global growth opportunities. The company's global tour of value starts with European defense stocks, which collectively spent €343 billion on European defense in 2024.