Larry Fink, chairman and CEO of BlackRock, has warned that widening inequality and the rapid rise of artificial intelligence could deepen economic divides unless more people gain access to capital markets, in his 2026 annual letter to investors released on Monday.
In the letter, Fink said the global economic order is undergoing a structural shift marked by geopolitical tensions, trade realignment, and the push for national self-reliance in critical sectors such as energy, defence and technology. These transitions, he noted, are capital-intensive and increasingly reliant on financial markets rather than traditional funding channels like banks or governments.
“The old model of global capitalism is fracturing,” Fink said, adding that countries are spending heavily to secure domestic supply chains and industrial capacity, even at higher costs.
Wealth gap
A key concern highlighted in the letter is the growing gap between asset owners and wage earners. Fink pointed out that over the past decades, wealth creation has disproportionately benefited those invested in markets, while wage growth has lagged significantly. He cautioned that AI could accelerate this trend by concentrating gains among companies and investors with the scale and resources to deploy the technology.
“Capitalism is working — just not for enough people,” he said, calling for policies that expand participation in long-term investing.
Fink emphasised that broader access to capital markets could help address inequality and support economic growth. He cited initiatives such as early-stage investment accounts, improved financial infrastructure and digital platforms as ways to bring more individuals into the investment ecosystem.
Fink stressed on the importance of long-term investing, saying that it performed a ‘civic miracle.’
“When people invest their savings — over decades, not days — the capital markets put that money to work, financing companies, infrastructure, and jobs. And when that cycle happens in your own country, your future and your nation’s future become linked,” he said.
He pointed out that if prosperity was being increasingly created in the capital markets, “part of the answer is to make sure more people are invested in them.” Missing key market rallies, Fink noted, can significantly reduce returns, reinforcing the importance of staying invested.
He also highlighted the role of technology, including tokenisation and digital wallets, in lowering barriers to entry. In countries like India, he noted, widespread smartphone adoption is already enabling millions to access financial services and potentially invest in markets.
On BlackRock’s performance, Fink said the firm ended 2025 with record assets under management of $14 trillion and nearly $700 billion in net inflows. The company is targeting expansion in private markets, technology, and digital assets as part of its growth strategy through 2030.