BlackRock Inc. is reducing its equity exposure across its $220 billion model-portfolio business as US stocks climb to record levels. The world's largest asset manager is scaling back stock positions after a robust earnings season lifted major indices to new peaks. This shift suggests BlackRock sees limited upside in equities despite the rally.

The move comes amid surging market valuations that have pushed major benchmarks higher. Strong corporate earnings have fueled the rally, creating a disconnect between market prices and BlackRock's outlook. The firm manages trillions in assets globally and its model portfolios guide investment strategies for retail investors and financial advisors.

Asset managers typically adjust allocations when markets reach extremes. By trimming equities now, BlackRock appears to be locking in gains while positioning for potential volatility ahead. This contrarian stance contrasts with the broader market momentum and could influence how other large investors think about positioning.

The decision signals caution rather than bearishness. BlackRock isn't abandoning stocks entirely but reducing concentration risk as valuations stretch. For investors following model portfolios, this means lower equity exposure at exactly the moment markets hit new records.